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Oil rises as two storms approach the Gulf of Mexico, today, Wednesday, August 26, 2020 01:14 in the morning
Oil rises as two storms approach the Gulf of Mexico
Brent futures rose 9 cents, equivalent to 0.2% to $ 44.44 a barrel, and US West Texas Intermediate crude rose 9 cents, or 0.2%, also to $ 42.43 a barrel.
And Sunday, Hurricane Marco and Tropical Storm Laura hit the Caribbean and the Gulf of Mexico, forcing energy companies to withdraw workers from offshore platforms and halt oil production.
Producers cut 58 percent of offshore oil production in the Gulf of Mexico and 45 percent of natural gas supplies on Sunday. The region contributes 17% of total US oil production and 5% of natural gas production.
Edward Moya, Senior Market Analyst at Oanda in New York, said: “Crude prices have risen because the double woes in the Atlantic could lead to massive disruptions to oil operations in the Gulf of Mexico.
He added, “But the oil gains are likely to be muted as the uncertainty related to the virus continues to cast a shadow over the outlook for crude demand.”