Oil prices carried over a bullish tone from last week after Tropical Storm Barry shut down almost three-quarters of U.S. Gulf of Mexico production over the weekend.
Futures in New York were up slightly, after gaining 4.7% last week. Barry weakened to a tropical depression Sunday, with some producers preparing to re-staff their offshore platforms. As of Sunday, Barry caused nearly 73% of crude oil production in the gulf to shut, up from 70% the day before, the Bureau of Safety and Environmental Enforcement said in an update. The Gulf of Mexico accounts for 16% of total U.S. crude output, according to the Energy Department.
Rising tensions between the U.K. and Iran, as well as a steep drop in American crude stockpiles, have helped offset concerns over weakening demand, with the storm adding to the positive mix for oil prices.
West Texas Intermediate crude for August delivery rose 2 cents to $60.23 a barrel on the New York Mercantile Exchange as at 8:51 a.m. Sydney time. August WTI closed Friday 1 cent higher at $60.21 a barrel.
Brent for September settlement held gains on Monday, after ending Friday up 20 cents, or 0.3%, at $66.72 a barrel on the ICE Futures Europe Exchange.
Source : Bloomberg