Oil rises over 2% as U.S. Gulf Coast braces for hurricane | Reuters

Oil rises over 2% as U.S. Gulf Coast braces for hurricane | Reuters:

Oil prices rose more than 2% on Tuesday, supported by hurricane supply disruptions in the United States, but demand concerns loomed as energy industry forecasters predicted a slower-than-expected recovery from the pandemic.

Brent crude LCOc1 gained 92 cents, or 2.3%, to settle at $40.53 a barrel, while U.S. West Texas Intermediate (WTI) crude futures CLc1 rose $1.02, or 2.7%, to settle at $38.28 a barrel. Both contracts fell on Monday.

Futures gained ahead of Hurricane Sally’s expected landfall on the U.S. Gulf Coast. More than a quarter of U.S. offshore oil and gas production was shut and key exporting ports were closed as the storm’s trajectory shifted east toward western Alabama, sparing some Gulf Coast refineries from high winds.

“Harsh weather events in the U.S. cause some unpredictability about its oil production and that’s always good news for prices,” said Bjornar Tonhaugen, Rystad Energy’s head of oil markets.