Oil prices are rising on Monday morning on news of another storm in the US, which threatens to stop production in the Gulf of Mexico.
The price of November futures for the North Sea oil mixture of Brent rose by 0.3% to $39.95 per barrel. October futures for WTI crude oil rose in price by 0.62% вЂ” to $37.56 per barrel.
The news about the storm in the US is in the spotlight of investors on Monday. The US National Hurricane Watch Center (NHC) said Saturday that Tropical Storm Sally has formed off the coast of the US state of Florida in the Gulf of Mexico, which could intensify into a hurricane. Reuters on Sunday reported that energy companies Chevron and Murphy Oil are already evacuating workers from oil and gas platforms.
In addition, an OPEC + meeting is expected this week. Bidders are awaiting news on the implementation of agreements on production cuts by alliance members, especially in light of the slowing recovery in demand.
The oil market is also supported by news about the coronavirus vaccine. The University of Oxford and AstraZeneca have resumed clinical trials of the vaccine following a suspension caused by illness from one of the volunteers.
вЂњOptimists remain focused on the vaccine,вЂќ AxiCorp analyst Stephen Innes told Bloomberg, adding that this is pushing prices up, even though there is no confidence in the economic recovery.