Oil gains near $40 with hurricane delta threatening Gulf output

Oil rose near $40 a barrel in New York with the market turning its attention to a hurricane that’s caused widespread shut-ins to Gulf of Mexico output.

Energy operators in the Gulf of Mexico have shut 80% of oil output in preparation for Hurricane Delta, which barreled across the Yucatan Peninsula and is poised to hit the Louisiana coast on Friday. Stock markets also edged higher on Thursday on hopes that American lawmakers will reach a stimulus deal.

Oil remains tied to the $40 marker as the conflicted forces of American stimulus measures and flagging demand keep prices in check. There’s also the question of OPEC+’s next plan of action, with Vitol Group expecting the organization to change course on plans to relax output cuts in January. For now though, focus remains on one of the most active hurricane seasons in recent memory.