What's Moving the Oil Markets?

•-Crude oil futures in London rebounded after a heavy sell-off, which was primarily led by the partial exiting of the hedge funds, but recovered to trade above $71/barrel on short-covering as the threat of hurricanes in the US Gulf Coast returned and Iran again refused to halt its nuclear program.

•-The front-month October Brent futures contract traded $70.99/barrel at 1235GMT. Oil prices had tumbled sharply in the last few trading sessions as fears of a hurricane-related disruption to US oil production in the Gulf of Mexico from tropical storm Ernesto appeared to have dissipated.

•- But another storm was brewing in Hurricane John, currently a category three hurricane battering the western coast of Mexico. While its path implied there was no threat to oil production, the market remains jittery just days after the first anniversary of the devastating Hurricane Katrina.

•- Thursday marked the last day for Iran to comply with a UN Security Council demand to halt its uranium enrichment program or face possible sanctions.