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The Honolulu Advertiser
Posted on: Monday, October 8, 2001

The September 11th attack | American strikes back
Crude oil prices up 2 percent

Advertiser News Services

Crude oil rose on concern the U.S. bombings in Afghanistan may lead to disruptions in supplies from the Middle East, though the rally may be short-lived because energy demand is weakening, traders said.

The risk to oil shipments is small because Afghanistan isn't a producer, and exporters such as Saudi Arabia have pledged to keep supplies flowing, analysts said.

Crude oil for November delivery rose as much as 44 cents, or 2 percent, to $22.83 a barrel on the New York Mercantile Exchange. Oil prices have dropped about 19 percent since the Sept. 11 terrorist attacks in the U.S., which promoted yesterday's strikes against Afghanistan.

Meanwhile, gasoline prices fell a record 10.81 cents in the past two weeks, but yesterday's bombing of Afghanistan could send prices higher, according to the new Lundberg survey.

The average price of gasoline on Friday, including all grades and taxes, was $1.43 a gallon, down 10.81 cents since Sept. 21, according to the Lundberg Survey of nearly 8,000 stations nationwide.

Prices fell in large part because consumers canceled trips and curtailed travel following the Sept. 11 terrorist attacks in New York and Washington, Lundberg said.