Oil and gas markets came under intense pressure yesterday as Hurricane Katrina swept through the Gulf of Mexico, forcing the closure of oil production platforms, refineries and the Henry Hub - the biggest trading centre in the US.

Analysts said about 12 per cent of US crude oil production capacity and 10 per cent of total US refining capacity was shut down.

Oil prices hit a new record of $70.80 (€57.89) a barrel, while petroleum futures traded at 213.80 cents a gallon, up more than 10 per cent.

But the biggest impact was felt on the natural gas market, where prices surged 23 per cent, surpassing $12 per million British thermal units (Btu).

Oil refineries were hit hard, with expectations that 1.8 million barrels a day of capacity has been shut down by the storm that ripped through the heart of America's oil region.

Analysts said it would be days before the damage could be assessed.

The hurricane was downgraded from the highest category five to a category three, and changed direction at the last minute.

However, the US Coast Guard said it had received reports that oil platforms could be adrift in the Gulf of Mexico.

Claude Mandil, executive director of the International Energy Agency, the group that co-ordinates oil releases from the strategic stocks of the world's biggest oil consumers, said a decision would be made only once the damage had been assessed, possibly by the end of this week.

"We have plenty of commercial stocks worldwide to wait those six days," Mr Mundil told the Financial Times.

The Bush administration said it would consider dipping into the nation's emergency crude oil stockpile if asked to do so by US refiners.

The US Department of Energy said it had not received any formal requests from oil companies for loans from the US's Strategic Petroleum Reserve.

If refinery damage proves to be severe, Europe will need to send some of its emergency stockpiles of petrol to the US, Mr Mandil said.

Markets in Asia were hit by fears about the impact of higher energy prices on oil-importing economies such as Japan, China and Indonesia.

Oil producers in the US were weaker as markets worried about the production disruption caused by the hurricane.

About 50 per cent of US crude refining capacity is located along the Gulf coast, prompting concerns about a further squeeze on oil product prices such as petrol.

Some economists were already downgrading their estimates for US third-quarter growth as a result of the storm's impact on the energy sector as well as the New Orleans region.

Investors fled to safe haven instruments such as government bonds, where prices rose. The 10-year yield dipped three basis points to 4.16 per cent, just above a month-low.