Brent crude oil futures <LCOc1> added 37 cents, or 0.82%, to
$45.50 a barrel by 1048 GMT and U.S. West Texas Intermediate
crude <CLc1> rose 15 cents, or 0.35%, to $42.77 a barrel.
"Overall, hurricanes may be limiting supply this week, helping
prices maintain and even slightly hike their levels, but the
market will soon again focus on the biggest hurricane of them
all, COVID-19," Bjonar Tonhaugen, head of oil markets at Rystad
Energy, said.
"The demand recovery...and indications of how the pandemic
develops are what will really determine the direction of the
market."
Energy companies cut production at U.S. Gulf Coast oil
refineries on Monday after shutting 82% of the area's offshore
crude oil output as a rare double-storm assault on U.S. oil
regions threatened heavy rains and strong winds.
However, the risk of a major double hit has lessened. Storm
Laura was still expected to become a major hurricane but storm
Marco has weakened and was likely to dissipate by early
Wednesday, the National Hurricane Center said.
Producers have shut more than 1.5 million barrels per day of
Gulf Coast offshore oil production, nearly 14% of the nation's
total output.
A U.S. infectious diseases specialist said on Monday that
rushing out vaccines could undermine trials of other promising
candidates, following a boost to markets after U.S. regulators
authorised the use of blood plasma from recovered COVID-19
patients as a treatment.
Europe is also seeing a rise in coronavirus cases, including
re-infection. Two re-infections were reported in Europe and one
in Hong Kong this week.
Elsewhere, U.S. and Chinese trade officials have reaffirmed
their commitment to a Phase 1 trade deal, giving a boost to
financial markets on Tuesday.
Meanwhile U.S. crude oil stockpiles likely fell for a fifth
straight week, while refined product inventories also decreased
last week, a preliminary Reuters poll showed on Monday.
(Additional reporting by Jessica Jaganathan; Editing by Barbara
Lewis)
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