Crude oil futures prices gained strength near the close as Hurricane Idalia intensified as it headed towards Florida’s Gulf Coast, threatening to hit supply in a market that is already tightening.
The Idalia strengthened today as it headed toward Florida after rounding Cuba. According to the local weather system, the hurricane is expected to make landfall tomorrow, when it is likely to cause power outages and could affect oil production.
US oil producer Chevron evacuated workers from three oil production platforms in the Gulf of Mexico ahead of the hurricane.
Supply concerns were also heightened by a fire at a Marathon Petroleum refinery last week after a chemical leak ignited two giant storage tanks full of naphtha.
At around 2:00 pm EST, the price of WTI oil contract traded on Nymex (CCOM:OILCRUDE) for delivery in October was up 1.11%, quoted at US$80.99 a barrel. The price of the Brent (CCOM:OILBRENT) contract traded on the ICE platform, with delivery in November, increased 1.01%, quoted at US$ 85.28 a barrel.