Oil rebounded on concerns over production disruption in the US
The storm, which is barrelling toward Louisiana has forced companies to halt roughly 25% of their Gulf crude output. Oil giants such as Exxon Mobil and Shell have evacuated crews and suspended operations on platforms
Oil prices climbed more than 2% on Wednesday, 11 September as Hurricane Francine threatened to severely disrupt US offshore oil production. The storm, advancing toward Louisiana, has prompted major oil companies to shut down approximately 25% of their Gulf crude output. Industry giants including Exxon Mobil and Shell have evacuated personnel and suspended operations on vulnerable platforms due to the hurricane's severe winds and high waves.
Brent settled at $70.61/barrel, indicating an increase of $1.42 or 2.05%.
WTI rose $1.56, or 2.37% to close at $67.31/barrel.
The market's reaction came despite a bearish report from the U.S. Energy Information Administration, which disclosed an unexpected 833,000-barrel increase in domestic crude stockpiles for the past week.
Written by: Rochelle Nguyen