MTS Help Center

Oil extends gains on brighter demand outlook, Mexico outages

Oil prices rose 3% on Tuesday, extending sharp gains on a bullish demand outlook after U.S. regulators issued their first full approval for a COVID-19 vaccine and Mexico suffered a large production outage due to a fire on an oil platform.

Brent crude oil futures settled 3.35% higher at $71.05 per barrel.

U.S. West Texas Intermediate (WTI) gained $1.90, or 2.9%, to settle at $67.54 per barrel.

Also supporting oil prices was a fire on an oil platform off Mexico on Sunday that has cut state-run Pemex’s oil production by about 25% since then. Five workers died and the fire halted 421,000 barrels per day of production.

Prices of heavy sour crude oil grades are rising on the U.S. Gulf Coast, traders said, as the market braces for a disruption of supplies from Mexico.

Reference: CNBC