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Oil surged over 2% amid Gulf of Mexico production shutdownsOil prices rose sharply on Thursday, climbing more than 2% as the market evaluated the damage to US Gulf of Mexico oil output following the passage of Hurricane Francine. |
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Oil prices rose sharply on Thursday, climbing more than 2% as the market evaluated the damage to US Gulf of Mexico oil output following the passage of Hurricane Francine. The storm caused substantial disruptions, leading to a second consecutive day of price gains in the global oil market.
The US Bureau of Safety and Environmental Enforcement reported that over 730,000 barrels per day, or nearly 42% of the region's oil production—were offline on Thursday due to the hurricane.
WTI settled up by $1.66, or 2.5%, at $68.97/barrel.
Brent rose by $1.36, or 1.9%, to $71.97/barrel.
While the production shutdown has driven prices higher in the short term, some analysts warn that Hurricane Francine's impact may be fleeting. Without a sustained disruption to supply, the market might shift back to concerns about weak global demand.
Written by: Rochelle Nguyen
