Storms along the Gulf of Mexico will be a major concern for the oil industry until the Atlantic hurricane season officially ends in November. Bad weather leads to more supply disruptions, which could mean higher oil prices for both WTI and Brent.
Brent crude oil futures rose above $75 a barrel for the first time in more than a month as supplies fell in the wake of a recent hurricane along the Gulf of Mexico. WTI crude oil futures also surged, rising as much as 4 per cent today.
The United States has lost nearly 27 million barrels of crude oil supplies since Hurricane Ida made landfall in the region nearly three weeks ago. After that, although it experienced another storm, it did not have a negative impact on production. But for the second time, it has restricted the operation of the industry.
The supply shock caused the time spread of Brent crude oil futures to widen. The December delivery contract is now trading at a premium of $5.92 over the December delivery contract, the highest premium since July.