Oil sustains gains as Nicholas approaches
Oil prices maintained their gains on Tuesday, remaining near a six-week high amid signs of another hurricane that could affect production in Texas this week. The U.S. oil industry is still struggling to resume production following Hurricane Ida’s destruction on the Gulf Coast.
Brent crude climbed up 0.2%, or 15 cents, to $73.66 a barrel by 0048 GMT, after a 0.8% gain in the previous day. U.S. West Texas Intermediate (WTI) crude likewise jumped 0.3%, or 23 cents, to $70.68 a barrel, following a 1.1% increased on Monday.
Both benchmarks stayed close to their highest since early August.
Meanwhile, evacuations were ongoing on Monday from offshore U.S. Gulf of Mexico platforms even as onshore oil refiners began preparations for Tropical Storm Nicholas. Nicholas was heading toward the Texas coast with winds reaching 70 miles per hour (113 kph), posing a threat to coastal Texas and Louisiana.
Over 40% of the U.S. Gulf’s oil and gas output was still offline on Monday.