Sept. 14 (Bloomberg) -- Crude oil fell from a record $80.36 a barrel in New York as Valero Energy Corp. and Total SA started refineries that were shut when Hurricane Humberto hit Texas.

Crude oil rose yesterday after the storm knocked out power at three refineries in Port Arthur, Texas. Valero and Total said that crews were working to restore operations at the plants, which can process a combined 565,000 barrels of oil a day.

``The dwindling storm threat and the fact that refineries are coming back is keeping a lid on prices,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd, the brokerage unit of Man Group Plc, in New York.

Crude oil for October delivery fell 99 cents, or 1.2 percent, to settle at $79.10 a barrel at 2:50 p.m. on the New York Mercantile Exchange. It was the first decline in ten days. Today was the third straight day oil has reached a record. Trading began in 1983. Prices are up 3.1 percent this week and 25 percent from a year ago.

Brent crude oil for November settlement fell 90 cents, or 1.2 percent, to close at $76.22 a barrel on the London-based ICE Futures Europe exchange.

Motiva Enterprises LLC, a joint venture of Shell and Saudi Arabia's state oil company, will issue a schedule Sept. 17 for restoring production at its Port Arthur refinery. The plant has the capacity to process 285,000 barrels of oil a day.

Humberto was downgraded to a tropical depression and was located 50 miles (80 kilometers) northeast of Jackson, Mississippi, at 10 a.m. local time, the U.S. National Hurricane Center said on its Web site.

Tropical Storm Ingrid

Forecasters are also monitoring Tropical Storm Ingrid in the Atlantic Ocean that's currently not forecast to reach land. Ingrid, with 40 mph winds, was 755 miles east of the Lesser Antilles and heading west-northwest at 10 a.m. Miami time, according to the center.

``There's a significant global supply deficit,'' said Sarah Emerson, managing director of Energy Security Analysis Inc., a consulting firm in Wakefield, Massachusetts. ``The buffer is gone so when there is any hiccup in the supply chain you'll get an outsized reaction.''

Oil breached $80 a barrel in New York for the first time on Sept. 12, a day after OPEC decided to raise output by 500,000 barrels a day. Members of the Organization of Petroleum Exporting Countries produce more than 40 percent of the world's oil.

``The additional 500,000 barrels isn't going to make much of a dent,'' said Simon Wardell, energy research manager at Global Insight Inc. in London. ``We think any fallout from the financial turmoil will be next year. That points to an increase in demand in the fourth quarter and we just simply don't have enough supply to go around.''

Crude oil may decline next week on speculation refiners will shut units in the coming month for maintenance, reducing demand, according to a Bloomberg survey.

Twenty-seven of 41 analysts surveyed, or 66 percent, said oil prices will fall through Sept. 21, the most bearish response since October 2005. Seven, or 17 percent, said prices will increase and seven forecast little change.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

Last Updated: September 14, 2007 15:45 EDT