Potential Gulf Hurricane Pushing Oil Prices Higher

New York, NY, Aug. 28, 2008--Nerviousness over tropical storm Gustav sent oil prices higher for the fourth straight day, breaking through $120 per barrel as Gustav headed for the Gulf of Mexico and strengthened as it bore down on the vast U.S. energy infrastructure along the coast.

Winds increased to near 70 mph and the National Weather Service expects the storm to become a full-fledged hurricane later in the day.

The exodus from the Gulf by oil workers accelerated.

Royal Dutch Shell PLC has evacuated nearly 400 people and said it will bring in another 270 Thursday.

The company said production will be impacted. BP PLC was also removing personnel from the region that's home to about a quarter of U.S. crude production and much of its natural gas.

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.

Though it was too soon to know where the storm would hit, atmospheric models showed Gustav heading toward Louisiana and areas devastated by Hurricanes Katrina three years ago Friday.