oil platfrom rig in the middle of the ocean

Oil prices continue to rise

The oil price is in the late evening Asia time (GMT+7) further in plus. The concern that Tropical Storm Nicholas causes renewed flooding and power outages on the Gulf Coast makes the oil price continues to rise.

WTI crude oil is up 0.07% to $70.67 a barrel.
Brent crude oil rises 0.04% to $73.68 per barrel. Both crude oil types rise to a 6-week high.

The damage from Hurricane Ida has not yet been repaired as the next storm hits the Gulf Coast. Tropical Storm Nicholas spreads concern that there could be further delays in oil production in the Gulf of Mexico. The damage caused by Hurricane Ida still shuts down more than 40% of oil and gas production in the region. Hurricane Ida has claimed the lives of more than 67 people. To bring the workforce to safety, evacuations of some oil platforms have already begun on Monday. The oil supply shortages caused by the recent weather events are currently a factor driving up oil prices.

The International Energy Agency, meanwhile, has published data predicting higher oil demand by the end of the year. In October, demand is expected to rise again by 1.6 million barrels and continue to grow through the end of the year. The agency based the optimistic outlook on supposedly weakening COVID-19 figures.

China is planning the first sale of its strategic oil reserves at the end of September. The release of oil reserves is expected to ease supply constraints and push oil prices down.

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