Oil rises due to a storm threatening the Gulf of Mexico – the site of Al-Manar Channel – Lebanon

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Oil prices rose on Monday, due to a tropical storm in the Gulf of Mexico that forced companies to evacuate platforms and halt production, but the gains were limited by concerns about a glut in global supplies and a decrease in demand for fuel.

US West Texas Intermediate crude futures were up 14 cents, or 0.4 percent, to $ 37.47 a barrel. Brent crude added 6 cents, or 0.2 percent, to $ 39.89 a barrel.

Both were lower last week, down for the second week in a row.

Tropical Storm Sally intensified in the Gulf of Mexico to the west of Florida on Sunday and is expected to turn into a Category 2. Hurricane. The storm is disrupting oil production for the second time in less than a month after Hurricane Laura hit the region earlier.

Oil usually rises when production stops, but in light of the worsening Corona virus pandemic, concerns about demand dominate the scene, while global supplies grow. The United States is the largest consumer and producer of oil in the world.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC + group, will meet on September 17 to discuss the extent of commitment to deep production cuts, but analysts do not expect the adoption of new cuts.

Source: Reuters







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