Oil treads water as huge Gulf of Mexico storm shuts output

Oil treads water as huge Gulf of Mexico storm shuts output
  • Clock-gray 07:08
  • calendar-gray 27 August 2020

Oil prices were in a holding pattern on Thursday as a massive storm in the Gulf of Mexico raced towards the heart of the U.S. oil industry, forcing oil rigs and refineries to shut, with little impact expected on supply as oil stockpiles remain high, APA reports quoting Reuters.

U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 4 cents, or 0.1%, to $43.35 a barrel by 0148 GMT, erasing Wednesday’s slight rise. 

Brent crude LCOc1 futures for October, which expire on Friday, inched up 5 cents to $45.69 a barrel after falling 22 cents, or 0.5%, on Wednesday. The more active November Brent contract LCOc2 rose 2 cents to $46.18. 

The threat from Hurricane Laura pushed the market higher earlier in the week, but the storm is not expected to affect supplies much because oil and product inventories remain high due to the coronavirus pandemic’s hit to fuel demand.

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