Oil up as U.S. recovers from Ida
Oil gained for a second session on Monday as worries over closed production in the U.S., the world’s top oil producer, supported the market along with expectations for higher demand. US production was halted as Hurricane Ida hit the country.
Brent crude rose 0.9%, or 67 cents, to $73.59 a barrel. U.S. West Texas Intermediate (WTI) also went up, gaining 1% or 66 cents to $70.38 at 0633 GMT. Both markets were at a peak since September 3 earlier in the session.
Almost three-quarters of the production in the U.S. Gulf of Mexico, or about 1.4 million barrels per day, has been offline since late August, roughly equal to the amount that Nigeria produces.
Contrary to previous storm recoveries, U.S. refiners are getting back up from the impact of Hurricane Ida faster than oil production. The majority of the nine Louisiana refineries affected by Ida have already restarted or were restarting on Friday.
The number of oil rigs in operation in the U.S. edged up in the previous week, an indication that production may climb up in the following weeks.