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Companies including BP <BP.L>, Chevron <CVX.N> and Equinor ASA <EQNR.OL>
evacuated rigs, and so far producers have shut 16%, or 293,656
barrels per day (bpd) of oil output due to Hurricane Zeta.
Brent crude <LCOc1> was up 41 cents, or 1%, at $40.87 per barrel
by 1124 GMT. U.S. oil <CLc1> gained 38 cents, or 1%, to $38.94.
Both contracts fell more than 3% on Monday.
"Whilst Hurricane Zeta could provide a price relief under the
current circumstances, it will be very brief," said Tamas Varga
of oil broker PVM. "The mood is, indeed, souring."
Oil has declined because of rising coronavirus infections
globally and a lack of progress on agreeing a U.S. coronavirus
relief package. Still, U.S. House of Representatives Speaker
Nancy Pelosi is hopeful a deal can be reached before the Nov. 3
election.
"The rising number of infections, lockdowns and travel
restrictions is a serious threat," said Paola Rodriguez-Masiu of
Rystad Energy. "The situation at the moment looks more
pessimistic than not."
Libyan production is expected to reach 1 million bpd in coming
weeks, the country's national oil company said on Friday,
complicating efforts by other OPEC members and allies to
restrict output.
The Organization of the Petroleum Exporting Countries and
allies, known as OPEC+, are planning to increase production by 2
million bpd from January after record output cuts this year.
But Russian President Vladimir Putin, speaking last Thursday,
did not rule out extending the cuts for longer.
The latest U.S. inventory figures due later on Tuesday and on
Wednesday are expected to show rising supplies. Analysts expect
crude stocks to rise by about 1.1 million barrels. [EIA/S]
(Additional reporting by Aaron Sheldrick and Sonali Paul;
editing by David Evans and Jason Neely)
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