Oil extends gains on worries of U.S. supply disruptions from another storm
Oil prices extended gains on Tuesday, hovering near a six-week high, on signs another storm could affect output in Texas this week even as the U.S. industry struggles to return production after Hurricane Ida wreaked havoc on the Gulf Coast.
Brent crude rose 15 cents, or 0.2% to $73.66 a barrel by 0048 GMT, having gained 0.8% the previous day. U.S. West Texas Intermediate (WTI) crude also climbed 23 cents, or 0.3%, to $70.68 a barrel, after rising 1.1% on Monday.
Both benchmarks were hovering near their highest since early August hit the previous day.
Evacuations were underway on Monday from offshore U.S. Gulf of Mexico oil platforms as onshore oil refiners began preparing for Tropical Storm Nicholas, which was heading towards the Texas coast with 70 miles per hour(113 kph) winds, threatening coastal Texas and Louisiana still recovering from Hurricane Ida.
The U.S. government agreed to sell crude oil from the nation’s emergency reserve to eight companies including Exxon Mobil, Chevron and Valero, under a scheduled auction to raise money for the federal budget.
Traders noted China’s planned release of oil from strategic petroleum reserves (SPRs) could boost supplies available in the world’s the second biggest oil consumer.
Reference: CNBC
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