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Oil mixed as storm threatens U.S. gulf production

Published 09/14/2020, 09:08 AM
Updated 09/14/2020, 09:10 AM
© Reuters.
BP
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EQNR
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LCO
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CL
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TOKYO, Sept 14 (Reuters) - Oil prices were mixed on Monday
with U.S. crude rising as a tropical storm in the Gulf of Mexico
forced rigs to shut down, but the gains were kept in check by
wider concerns about excess supply and falling demand for fuels.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
up 9 cents, or 0.2%, at $37.42 a barrel by around 0050 GMT.
Brent crude LCOc1 was down 3 cents at $39.80 a barrel.
Both contracts ended last week lower, a second consecutive
week of declines.
Tropical Storm Sally gained in strength in the Gulf of
Mexico west of Florida on Sunday and was poised to become a
category 2 hurricane. The storm is disrupting oil production for
the second time in less than a month after hurricane Laura swept
through the region. Typically oil rises when production is shut but with the
coronavirus pandemic getting worse demand concerns are to the
fore, while global supplies continue to rise.
"A lacklustre driving season in the U.S. has seen the market
reassess its view of U.S. demand," ANZ Research said in a note.
Also "with U.S. refiners now shutting down for maintenance,
crude demand is likely to remain soft."
The U.S. is the world's biggest oil consumer and producer.
BP Plc BP.L and Equinor ASA EQNR.OL evacuated staff from
some offshore platforms on Sunday after similar moves by Chevron
Corp CVX.N and Murphy Oil Corp MUR.N the day before.
In Libya, commander Khalifa Haftar committed to ending a
months-long blockade of oil facilities, a move that would add
more supplies to the market, although it was unclear if oil
fields and ports would begin operations.

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