Oil futures notched back-to-back gains Tuesday, building on the previous session’s sharp climb as investors focused on a strike that’s curtailed Norwegian output and Hurricane Delta, which has led to production disruptions in the Gulf of Mexico.
Delta is “rapidly intensifying as it enters the Gulf and oil companies are already beginning offshore evacuations in the region that accounts for 17% of U.S. crude oil production,” said Craig Erlam, senior market analyst at Oanda, in a market update reported MarketWatch.
West Texas Intermediate crude for November delivery rose $1.45, or3.7%, to settle at $40.67 a barrel on the New York Mercantile Exchange, following a climb of 5.9% on Monday.
December Brent crude gained $1.36, or 3.3%, at $42.65 a barrel on ICE Futures Europe.
Hurricane Delta strengthened into a “extremely dangerous” Category 4 storm Tuesday afternoon as it took aim on the northeastern coast of the Yucatan peninsula. It’s expected to make landfall on the Gulf Coast later this week.
In preparation for Delta, the Bureau of Safety and Environmental Enforcement estimated that 29.2% of Gulf oil production and nearly 8.6% of natural-gas output was shut in as of Tuesday afternoon.
Source: MarketWatch
