NEW YORK (CNN/Money) - Stocks look set for a lower start Monday as Hurricane Katrina's fury sent investors running for cover before the opening bell with oil touching a record $70 a barrel.

U.S. stock futures sank in early trading, indicating a lower opening for Wall Street. Hurricane Katrina barreled through the Gulf of Mexico, hitting oil refineries along the way, forcing refiners and oil producers to shutter their operations.

Overseas, stocks tumbled in Asia and were lower in Europe as traders eyed the impact of the storm.

Oil prices jumped over $70 a barrel overnight, after falling on Friday on hopes that Hurricane Katrina's path would bypass the Gulf of Mexico and head towards the Florida panhandle.

Prices later backed off a bit, with light crude for October delivery up $3.09 at $69.22 a barrel in electronic trading.

The hurricane is the eleventh storm to hit this season so far, and with forecasters calling for a particularly severe hurricane season this year, the market is wary of the impact the storms activity will have on the U.S. oil and refining region.

Major markets in Asia closed lower Monday, with Japan' Nikkei index sliding 1 percent and South Korea down 2 percent.

Major European markets -- with the exception of London, which was closed for a holiday -- were also lower in early trading. Many Europeans insurers have exposure to the region and are at risk to suffer losses in the wake of the hurricane.

Bond prices rose, cutting the yield on the 10-year treasury to 4.15 percent from the 4.19 percent level late Friday. The dollar was mixed against its foreign counterparts, down against the euro but higher against than the yen.

American International Group (Research) and other others insurers were already trading lower in Europe ashurricane experts warned that Hurricane Katrina's path of destruction could result in catastrophic damages when it makes landfall in New Orleans.

Some big U.S. industrial companies also took a hit, as traders bet higher oil prices would hurt their results. Goodyear Tire sank 3 percent in Frankfurt and Caterpillar was off more than 1 percent.

In other news, Intelsat, Ltd. andPanAmSat (Research) signed a definitive merger agreement under which Intelsat will acquire PanAmSat for $25 per share in cash, or $3.2 billion.

For a more detailed look at the markets before the open, click here.