Oil costs rose Tuesday, clawing again a few of their losses from latest weeks, with U.S. hurricane season limiting provide from the Gulf of Mexico.
Earlier than paring some good points, West Texas Intermediate futures, the U.S. benchmark, rose 1.7% to $37.86 a barrel, and world benchmark Brent crude rose 1.4% to $40.15 a barrel.
The Worldwide Vitality Company mentioned that precautionary shut-ins prompted by Hurricane Laura minimize U.S. provide by 400,000 barrels a day in August. In the meantime, it now expects world oil demand to contract within the final three months of the yr by 5 million barrels a day—some 600,000 barrels a day deeper than forecast final month.
The IEA’s evaluation and the prospect of extra storms within the coming weeks have helped drive costs larger, mentioned Bjørnar Tonhaugen, head of oil markets at consulting agency Rystad Vitality.