Oil rises 2% on U.S. Gulf shutdowns, outlook weak | Reuters
Crude settled higher on Tuesday as companies shut down some U.S. Gulf of Mexico oil production ahead of an approaching storm, although surging coronavirus infections and rising Libyan supply limited gains.
Companies including BP BP.L, Chevron CVX.N, Shell RDS.L and Equinor ASA EQNR.OL evacuated rigs or closed facilities. So far producers have shut 16%, or 294,000 barrels per day (bpd) of oil output due to Zeta, which weakened to a tropical storm on Tuesday from a hurricane on Monday, the U.S. National Hurricane Center (NHC) said.
Brent crude LCOc1 closed up 75 cents, or 1.9%, at $41.21 per barrel by 1:22 EDT (1722 GMT). U.S. oil CLc1 gained $1.01 cents, or 2.6%, to $39.57. Both contracts fell more than 3% on Monday.
The storm-induced bump in prices may be short-lived, however, with demand expected to weaken anew with coronavirus cases rising.
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