Oil gains on storm-hit U.S. output and COVID-19 treatment hopes - Reuters

Oil gains on storm-hit U.S. output and COVID-19 treatment hopes - Reuters:

Crude oil prices rose on Monday as storms closed in on the Gulf of Mexico, shutting more than half its oil production, and on signs of progress in development of a COVID-19 treatment.

Brent crude LCOc1 was up 33 cents, or 0.7%, at $44.68 a barrel by 1033 GMT. U.S. West Texas Intermediate crude CLc1 rose 32 cents, or 0.8%, to $42.66.

"Prices are taking their cues from Mother Nature this morning as two storms bear down on the Gulf of Mexico. Half of the region’s production has been shut down, though gains will be limited by the threat of a second prolonged COVID wave,” said Stephen Brennock of oil broker PVM.

Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil production in the U.S. Gulf of Mexico because of the twin threat from Hurricane Marco and Tropical Storm Laura. Workers have been evacuated from more than 100 production platforms.