NEW YORK – Oil prices rose more than 3% on Tuesday, supported by U.S. supply disruptions caused by an approaching hurricane in the Gulf of Mexico and an oil worker strike in Norway.
Source: Reuters
Energy companies shut offshore oil platforms as Hurricane Delta strengthened to a Category 2 and was on track to reach the Gulf of Mexico on Thursday. It would be the 10th named storm to hit the United States this year, which would break a record dating back more a century.
Brent crude futures LCOc1 were up $1.33, or 3.2%, by 11:37 a.m. EDT (1537 GMT) at $42.62 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 rose $1.47, or 3.8%, to $40.69.
“The tropical storms are driving us up a bit with the shut-downs in production,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
Chevron Corp CVX.N said it has begun evacuating all personnel from its platforms in the region and is shutting-in the facilities, while other producers have followed suit.
Norway’s petroleum output has declined by 8% due to an oil worker strike. A major labor union in the country is trying to resolve the dispute with oil companies, which have shut six offshore oil and gas fields.
About 60% of the total cuts were in natural gas, with crude oil and natural gas liquids making up the rest, Reuters calculations show.
Risk assets also fed off U.S. President Donald Trump’s return to the White House following three days in the hospital for treatment for COVID-19. His doctors noted, however, that he is not “out of the woods” yet.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke on Monday and prepared to talk again on Tuesday in an effort to reach a compromise over a U.S. economic relief package.
