Markets Braced for New Hurricane Threat

The oil markets are bracing themselves for a second hurricane that is threatening to further disrupt refinery operations in the Gulf Coast.

Hurricane Rita is on a similar course to Hurricane Katrina, which wreaked havoc in America's deep south.

Experts have warned that refinery platforms could be affected. Some facilities have already been evacuated.

Skip Simmons, gas and power research principal at the energy consultants Wood Mackenzie, told BBC Five Live that this latest Hurricane was threatening to follow in Katrina's footsteps.

"As it crosses the Gulf from east to west it will traverse, at least initially, the same path as Hurricane Katrina did," he explained.

"Therefore the platforms and offshore facilities that were beginning to recover from Hurricane Katrina have been abandoned again."

A lack of refinery capacity has been blamed for the recent surge in oil prices.

The oil producing cartel, Opec, has maintained that it is pumping enough oil but that facilities to convert crude into usable products like petrol and diesel are unable to keep up with demand.