Oil Inches Up As Mexican Field Output Declines

Crude oil rose in New York after production at Mexico's biggest field declined and the first hurricane formed in the Atlantic Ocean this year, raising concern output may be disrupted.

Petroleos Mexicanos, Mexico's state-owned oil company, reduced the amount of crude oil it supplies to Texas refineries operated by Royal Dutch Shell Plc and Valero Energy Corp. as falling production curbs exports. In the Atlantic, Bertha has intensified into a ``major'' Category 3 storm with winds of 120 miles per hour, the U.S. National Hurricane Centre said.

Crude oil for August delivery rose as much as $1.07, or 0.8 percent, to $142.44 a barrel on the New York Mercantile Exchange. It was at $142.38 a barrel at 1:38 p.m. Singapore time. Oil yesterday settled down $3.92, or 2.7 percent, at $141.37 a barrel. It reached a record $145.85 on July 3. Prices have surged 97 percent in the past year.

Tropical cyclones Katrina and Rita closed fields and refineries along the U.S. coast of the Gulf of Mexico in 2005.