Oil prices up on storm-hit US output and Covid-19 treatment hopes
Oil prices strengthened on Monday as storms threatening the Gulf of Mexico shut more than half of the region’s oil production and on expectations of progress in the development of a Covid-19 treatment.
Brent crude was up 53 cents, or 1.2%, at $44.88 a barrel by 11:22 a.m. EDT (1522 GMT). US West Texas Intermediate crude rose 28 cents, or 0.7%, to $42.62.
“Prices are taking their cues from Mother Nature this morning as two storms bear down on the Gulf of Mexico. Half of the region’s production has been shut down, though gains will be limited by the threat of a second prolonged Covid wave,” said Stephen Brennock of oil broker PVM.
