Oil Rises by a Storm Threatening The Gulf of Mexico

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

By 06:29 GMT, US West Texas Intermediate crude futures were up 14 cents, equivalent to 0.4%, to $ 37.47 a barrel. Brent crude increased 6 cents, or 0.2%, to record $ 39.89 a barrel. Both contracts were sealed lower last week, declining for the second consecutive week.

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. The storm disrupts oil production for the second time in less than a month after Hurricane Laura swept the region earlier.

Oil usually rises when production stops, but in light of the worsening coronavirus 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.