Oil edges up as storms take aim at Gulf of Mexico
Crude oil prices nudged higher on Monday as storms bore down on the Gulf of Mexico, shutting more than half the region’s oil production, although gains were capped by ongoing concerns about demand from coronavirus lockdowns.
Hurricane Marco and Tropical Storm Laura tore through the Caribbean and Gulf of Mexico on Sunday, forcing energy companies to pull workers from offshore platforms and shut down oil production.
Oil producers had shut 58% of the Gulf’s offshore oil production and 45% of natural gas production on Sunday. The region accounts for 17% of total U.S. oil production and 5% of U.S. natural gas output.
Brent crude oil futures added 33 cents, or 0.7%, to $44.68 a barrel, while U.S. West Texas Intermediate crude was up 29 cents, or 0.68%, to $42.63 a barrel.
Both benchmark contracts fell about 1% on Friday on economic concerns and rising crude supply.
Reference: CNBC
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