Oil steadies as storms hit production in Gulf of Mexico

24.08.2020 - Davydova Maria
Oil steadies as storms hit production in Gulf of Mexico

Crude oil prices steadied on Monday as storms hit the Gulf of Mexico, closing over half of the region’s oil production. However, prices were capped by rising concerns about fuel demand amid the coronavirus pandemic.

Brent futures fell 0.1%, or 2 cents, at $44.33 per barrel. U.S. West Texas Intermediate crude lost 0.1%, or 2 cents, at $42.32 per barrel.

Hurricane Marco and Tropical Storm Laura hit the Caribbean and Gulf of Mexico on Sunday, forcing energy companies to remove workers from offshore platforms and close down production.

Producers shut 58% of the Gulf’s offshore oil production and 45% of natural gas supply. The region makes up for 17% of U.S. oil production and 5% of U.S. natural gas output.

The coronavirus death toll worldwide exceeded 800,000 on Saturday, with the United States, India, and Brazil reporting the most fatalities.

Also weighing on oil prices is the rise in U.S. oil and natural rig count, with energy firms adding the most oil rigs in seven months as shale producers begin operations again.

Still, the OPEC+ compliance with the agreed output cuts supported prices.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?