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Crude oil rose

By: DYLAN

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Crude oil rose a third day and was trading near a record above $82 a barrel in New York after the U.S. Federal Reserve cut interest rates more than expected.

The Fed lowered its benchmark interest rate by a half point to 4.75 percent, the first cut in four years, to help sustain growth in the economy of the world's largest oil-user. Pricesof the oil also rose as Royal Dutch Shell Plc evacuated staff from the Gulf of Mexico because of a potential storm forming over Florida. Crude oil for October delivery rose as much as 69 cents, or 0.9 percent, to $82.20 a barrel in after-hours electronic trading on theNew York Mercantile Exchange. It was $82.14 at 8:25 a.m. in Singapore. The half-point reduction in the federal funds target was forecast by 23 of 134 economists surveyed by Bloomberg News. One hundred and five predicted a reduction of 25 basis points. A basis point is one-hundredth of a percentage point.

Brent crude oil, Storms

Brent crude oil for November settlement rose 61 cents, or 0.8 percent, to close at $77.59 a barrel on the London-based ICE Futures Europe exchange yesterday. New York oil prices have gained 11 percent this month as storms threatened production in the Gulf of Mexico and U.S. crude oil inventories fell. Shell evacuated about 300 non-essential workers from the Gulf yesterday and may relocate 400 today because of the risk from a tropical disturbance, the company said in e-mailed statement. Conditions appear to be favorable for asubtropical or a tropical cyclone to form over the next day or two,'' the center said in a forecast posted at 5:30 p.m. in New York.

September Risk

September accounts for about a third of the storms in the North Atlantic annually, according to hurricane center data. `We're just going to have to sit, wait and watch,'' to see if astorm develops, Excel's Waggoner said.

An Energy Department report today will probably show U.S. oil supplies dropped 2.03 million barrels last week, the 10th decline in 11 weeks, according to the median estimate from a Bloomberg News survey of 16 analysts. Inventories held oil supplies of 322.6 millinbarrels on Sept. 14, 8.3 percent more than the five-year average for the period.

The October oil contract expires at the close of trading today. The more widely held November contract was at $80.85 a barrel after rising 1.1 percent yesterday. World oil demand peaks in the fourth quarter when refiners make fuel for the northern hemisphere winter.it makes no sense for oil to be up as high as it is now,'' Excel's Waggoner said. It's to early in the season'' to be worried about heating fuel supplies yet, he said.

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