Oil mixed as U.S. gulf operations shut due to storm
Oil prices were mixed on Monday with U.S. crude climbing as a tropical storm in the U.S. Gulf forced operations to close. Still, gains were held steady amid oversupply and weak fuel demand.
U.S. West Texas Intermediate crude futures rose 0.2%, or 9 cents, at $37.42 per barrel. Brent crude lost 3 cents to $39.80 per barrel. Both benchmarks closed lower last Friday, its second straight week of drops.
Tropical Storm Sally strengthened in the Gulf of Mexico on Sunday, threatening to become a category 2 hurricane. The storm is cutting off operations for the second time in less than a month after Hurricane Laura hit the gulf.
Normally, oil prices rise on production shutdowns. However, demand is extremely low due to the coronavirus pandemic and global supplies continue to go up.
Offshore platforms evacuated staff on Saturday and Sunday before the storm hit the region.