Oil prices rise as Hurricane Delta approaches

Oil prices rise on Thursday amid the suspension of production in the Gulf of Mexico and the evacuation of oil platform workers due to the approaching hurricane Delta.

Futures for Brent crude oil rose 0.26% to $ 42.1 per barrel by 09:31 Moscow time, WTI – added 0.1% to $ 39.99 per barrel.

Brent fell 1.6% on Wednesday and WTI fell 1.8% after the Energy Information Administration (EIA) reported a larger-than-expected rise in US oil inventories last week.

Hurricane Delta is forecast to intensify to Category 3 on the Saffir-Simpson scale, with wind speeds of up to 193 kilometers per hour. The companies evacuated employees from 183 offshore platforms, which were producing nearly 1.5 million barrels of oil per day.

Hopes for a further rise in US fuel demand were diminished on Wednesday, when White House officials confirmed that talks with Congress on new incentives were on hold.

“A fragmented approach to the US fiscal stimulus is unlikely to change the deteriorating forecast for oil demand,” said ANZ analyst Vivek Dhar.