Brent crude <LCOc1> was up 33 cents, or 0.7%, at $44.68 a barrel
by 1033 GMT. U.S. West Texas Intermediate crude <CLc1> rose 32
cents, or 0.8%, to $42.66.
"Prices are taking their cues from Mother Nature this morning as
two storms bear down on the Gulf of Mexico. Half of the region’s
production has been shut down, though gains will be limited by
the threat of a second prolonged COVID wave," said Stephen
Brennock of oil broker PVM.
Energy companies shut more than 1 million barrels per day (bpd)
of offshore crude oil production in the U.S. Gulf of Mexico
because of the twin threat from Hurricane Marco and Tropical
Storm Laura. Workers have been evacuated from more than 100
production platforms.
"While there is a focus on oil production at the moment, we will
need to keep an eye on refining activity, which is vulnerable to
flooding. The U.S. Gulf is a key refining hub," said Warren
Patterson, ING's head of commodities strategy.
Graphic: U.S. Gulf storm track as of August 24, 2020
https://fingfx.thomsonreuters.com/gfx/
ce/xegpboyervq/
GulfStormTrackAug24.png
Also supporting prices was a report by the Financial Times that
U.S. President Donald Trump is considering fast-tracking an
experimental COVID-19 vaccine being developed by AstraZeneca <AZN.L>
and Oxford University.
On Sunday Trump also hailed FDA authorization of a coronavirus
treatment that uses blood plasma from recovered patients, a day
after he accused the agency of impeding the rollout of vaccines
and therapeutics for political reasons.
Oil price gains were kept in check, however, by an increase in
the U.S. oil and natural rig count for the first time since
March, with the addition of the most oil rigs in seven months as
shale producers resume drilling.
(Reporting by Bozorgmehr Sharafedin in London; Additional
reporting by Jessica Jaganathan in Singapore; Editing by David
Goodman)
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