A new hurricane awaits in the Gulf of Mexico: oil prices rise

Oil prices climb to six-week highs and continue to rise as a new tropical storm approaches the Gulf of Mexico, while oil producers in the region have yet to recover from Hurricane Ida, Interfax reports.

Tropical Storm Nicholas, which could reach hurricane force before reaching land, is likely to cause heavy rains in Houston and parts of Louisiana.

Royal Dutch Shell, the largest oil producer in the Gulf of Mexico, has already begun evacuating employees from offshore platforms in preparation for the hurricane.

More than two weeks after the passage of the Ida, the capacities that provide about 44% of oil production in the American part of the Gulf of Mexico have not yet been restored.

The cost of November futures on Brent on the London ICE Futures exchange by 8:15 am Kyiv time on Tuesday amounted to $ 73.98 per barrel, which is $ 0.47 (0.64%) higher than the price at the close of the previous session. As a result of trading on Monday, these contracts rose by $ 0.59 (0.8%) - to $ 73.51 per barrel, the maximum since July 30.

The price of WTI futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) reached $ 70.98 per barrel by this time, which is $ 0.53 (0.74%) higher than the final value of the previous session. On Monday, the value of these contracts increased by $ 0.73 (1.1%) to $ 70.45 per barrel, the highest value since August 3.

“The threat of new production disruptions due to extreme weather is a concern for producers and is also the reason why traders are adding a premium to the market price of oil,” said Rystad Energy analyst Nishant Bhushan. "New tropical storm Nicholas in the Gulf of Mexico could escalate into a hurricane and hit Texas in the coming days."

OPEC, which published its monthly market review on Monday, retained its estimate of the growth in oil demand in 2021 - just like a month ago, experts expect global consumption this year to increase by 6 million barrels per day by 2022.

As reported that because of Hurricane Ida in the United States increased prices for gasoline and natural gas.

Tags: oil, USA, oil production, price, petroleum products, oil deliveries, energy sector, oil pipeline, economy, oil market

Read also

Naftogaz wants to increase oil production
Brent went up to $84.5 per barrel
Brazilian president wants to privatize oil and gas company Petrobras