Oil rises 4% on revived Middle East worries, Hurricane Isaias supply disruption
USO•Oil settled about 4% higher as Middle East concerns and Hurricane Isaias-related supply disruptions lifted prices. Brent rose 4.1% to $104.28 a barrel, while U.S. crude gained 3.6% to $91.49; about 1.3 million barrels per day of Gulf of Mexico oil output was shut in.
1. Prices rise on concerns
Brent crude futures settled up $4.08, or 4.1%, at $104.28 a barrel, while U.S. West Texas Intermediate rose $3.21, or 3.6%, to $91.49. Both contracts had gained more than $5 at one point as traders weighed potential U.S. strikes on Iran and Hurricane Isaias approaching the U.S. Gulf Coast.
2. Middle East risks
Prices retreated from their highs after President Donald Trump said the United States was having productive discussions with Iran and would not attack the country before the November 3 U.S. midterm elections. The United States also imposed sanctions on individuals, networks and 17 vessels for transporting Iranian crude, oil products and petrochemicals. Tanker attacks in the Strait of Hormuz reached their highest level since the war began, the article said.
3. Hurricane disrupts output
Producers had shut in about 1.3 million barrels per day, or 62.9%, of current U.S. Gulf of Mexico oil production as Hurricane Isaias approached. Shell and Chevron curtailed offshore operations, while BP removed personnel and shut production at its Na Kika and Thunder Horse platforms.
