Oil rises on slow supply recovery from the US

Stock Photo Oil Prices Rise 

Crude oil prices soared to six-week high on Monday due to slow recovery in the US output, two weeks after Hurricane Ida hit the coast. The prices were additionally lifted by the concern of another storm that could hit Texas this week, affecting crude oil output. November delivery Brent Crude oil futures last traded at US$73.49 per barrel down 0.20%, whereas October delivery WTI crude oil futures traded 0.14% up at US$70.55 per barrel as of 14 September 2021 at 10:23 AM AEST.

The significant rise in the oil prices was witnessed despite the OPEC announcing a cut in its oil demand forecast for the remaining 2021 on the concerns of the Delta virus. The U.S. National Hurricane Center projecting Tropical Storm Nicholas to hit the South Texas coast on Monday, disrupting the O&G operations in the region.

Bottom Line

Crude oil prices rise significantly on Monday on the back of supply concerns from the US. The US crude oil supply has been hit hard due to the impacts of Hurricane Ida, which hit the US Gulf Coast two weeks ago.