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Oil climbs to five-month high on storm-driven output cuts

Crude oil prices rose on Tuesday, hitting a five-month high as U.S. producers shut most output in the Gulf of Mexico ahead of Hurricane Laura even as rising coronavirus cases in Asia and Europe capped gains.

Brent futures rose 83 cents, or 1.8%, to $45.96 a barrel, while West Texas Intermediate crude rose 73 cents, or 1.7%, to settle at $43.35 per barrel.

U.S. producers cut crude output ahead of Hurricane Laura at a rate approaching the level of 2005′s Hurricane Katrina and halted most oil refining along the Texas/Louisiana coast.

Laura is expected to strengthen into a major hurricane with 115 mile per hour (185 kph) winds when it strikes the coast near the Texas-Louisiana border early Thursday, according to the U.S. National Hurricane Center.

Oil producers cut 84% of U.S. Gulf of Mexico output: U.S. regulator

Oil producers cut 1.56 million barrels per day, or 84% of the daily output, from U.S. offshore Gulf of Mexico wells ahead of a hurricane due this week, the Department of the Interior reported on Tuesday.

Reference: CNBC, Reuters