Oil Prices Rise as a Hurricane Delta Enters The Gulf of Mexico

Oil prices rose Thursday as workers in the oil sector evacuated platforms in the Gulf of Mexico in the United States before Hurricane Delta, but fears of fuel demand continued due to the dissipation of the prospects of a US stimulus agreement and after an increase in US crude stocks.

U.S. West Texas Intermediate crude futures rose 27 cents, or 0.68%, to $ 40.22 a barrel, after falling 1.8% on Wednesday. Brent crude futures were up 31 cents, or 0.74%, to $ 42.30 a barrel, after falling 1.6%on Wednesday.

With expectations that Hurricane Delta will increase in intensity to a Category 3 storm with winds of up to 193 kilometers per hour, oil producers such as Chevron have evacuated 183 offshore facilities and stopped production of 1.5 million barrels per day of oil.

The Gulf of Mexico produces 1.65 million barrels per day in July, according to the US government. The region, which accounts for 17% of US crude production, was affected by a number of storms over the past few months, each of which negatively affected oil production for a brief period.

Prices were also supported by a possible production disruption in the North Sea in Europe due to a labor strike in Norway.

On the demand side, hopes for another rise in US demand for fuel were dashed, as White House officials confirmed yesterday, Wednesday, that the stimulus negotiations were stalled a day after US President Donald Trump suspended talks on a wide-ranging package to mitigate the repercussions of Corona.

The US Energy Information Administration data revealed on Wednesday that gasoline stocks in the United States fell more than expected last week, reaching their lowest levels since November, and distillate stocks also declined. But crude oil supplies increased by 501,000 barrels, as production and imports increased.