Oil prices have soared over $120 US per barrel, again.
This time it is because of Tropical Storm Gustav is headed for the Gulf of Mexico, threatening oil production in the region. Transocean, the world's biggest offshore drilling contractor, is suspending operations at all of its rigs and pulling nearly 1,600 people out of the Gulf. Many other oil companies are also evacuating their personnel.
Gustav is the first storm of the 2008 Atlantic hurricane season to pose a serious threat to the more than 4,000 oil and gas installations in the Gulf. In 2005, Katrina and Rita destroyed 109 oil platforms and five drilling rigs.
The weak US dollar has also boosted oil prices.
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