PETROLEUM-Barrel rises due to storm approaching the production area in Gulf of Mexico

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by Noah Browning

LONDON, Aug 27 (Reuters) – Oil prices rose on Friday and were headed for big gains for the week on concerns about a supply disruption as companies began shutting down production in the Gulf of Mexico. ahead of the forecasts about the possible passage of a hurricane this weekend.

* At 1105 GMT, Brent crude futures were up $ 1.02, or 1.4%, at $ 72.09 a barrel. US West Texas Intermediate (WTI) oil futures were up $ 1.09, or 1.6%, at $ 68.51 a barrel.

* On the week, Brent is heading to mark an advance of more than 10%, its biggest weekly gain since June 2020. WTI is on track to climb more than 9% on the week, which would be its biggest appreciation since September 2020.

* “Energy traders are raising crude prices in anticipation of production disruptions in the Gulf of Mexico and growing expectations that OPEC + could resist increasing pumping given the recent impact of the Delta variant on demand for oil. crude oil, “Edward Moya, senior market analyst at OANDA, told Reuters.

* The companies began transporting workers by air from oil production platforms in the Gulf of Mexico on Thursday, and BHP and BP said they had begun halting production at offshore platforms as a storm was forecast to break. looming in the Caribbean Sea would cross the area on the weekend.

* Offshore wells in the Gulf of Mexico account for 17% of US oil production and 5% of dry natural gas production. More than 45% of the total refining capacity in the United States is located along the Gulf Coast.

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* “The market may have more immediate concerns, with a storm in the Caribbean. It is expected to become a powerful hurricane and potentially wreak havoc in the Gulf of Mexico and Texas early next week,” ANZ Research said in a note.

* The prices of oil and other risky assets on Thursday were pressured by comments from authorities of the Federal Reserve https://reut.rs/3jl5N36 of the United States that the central bank should start reducing its stimulus.

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