Oil closed above $70 a barrel for the first time in nearly six weeks as another heavy storm heads to the U.S. Gulf of Mexico, while producers are still reeling from Hurricane Ida.
Futures in New York settled 1.1% higher. Tropical Storm Nicholas, which may reach hurricane strength before it makes landfall, is expected to bring flooding rains to Houston, as well as parts of Louisiana still recovering from Hurricane Ida two weeks ago. About 44% of oil supply is down in the Gulf and the volume of shut-in output may start growing once again. Shell has already began removing some staff from one of its platforms to prepare for the storm. Refineries and terminals Texas could also see some curtailments, given the storm’s coastal track.