Oil Rises as Two Storms Approach Gulf of Mexico

Crude oil prices rose on Monday as two storms approached the Gulf of Mexico, cutting more than half of oil production there, and amid optimism about the Coronavirus, after the US Food and Drug Administration allowed the use of blood plasma from recovered patients as a treatment option.

Brent futures rose 9 cents, equivalent to 0.2%, at $ 44.44 a barrel by 0634 GMT, and US West Texas Intermediate crude rose 9 cents, or 0.2%, to $ 42.43 a barrel.

On 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 stopped 58% of offshore oil production in the Gulf of Mexico and 45% of natural gas supplies on Sunday. The region contributes 17% of total US oil production and five 5% of natural gas production.