Oil prices rise towards $41 on US Gulf shutdowns, weak outlook

Oil rose on Tuesday towards $41 a barrel as oil companies shut down some US Gulf of Mexico oil output due to a hurricane, although surging coronavirus infections and rising Libyan supply limited gains.

Companies including BP, Chevron and Equinor ASA evacuated rigs, and so far producers have shut 16%, or 293,656 barrels per day (bpd) of oil output due to Hurricane Zeta.

Brent crude was up 20 cents, or 0.5%, at $40.66 per barrel by 1344 GMT. US oil gained 18 cents, or 0.5%, to $38.74. Both contracts fell more than 3% on Monday.

“Whilst Hurricane Zeta could provide a price relief under the current circumstances, it will be very brief,” said Tamas Varga of oil broker PVM.