Oil prices climb as Hurricane Isaias halts Gulf of Mexico output
Oil prices rose sharply after Hurricane Isaias forced a major production shutdown in the northern Gulf of Mexico.
Key Takeaways
AIOil prices settled higher today as Hurricane Isaias moved toward the northern Gulf of Mexico, prompting oil companies to halt more than 70% of crude production in US waters.
Brent crude futures closed at $104.72 per barrel, up 44 cents or 0.42%. US West Texas Intermediate crude rose to $91.85 per barrel, gaining 36 cents or 0.39%.
Analysts said the production shutdown is a precautionary measure by companies to reduce risks associated with the hurricane, which is expected to impact the region.
The Gulf of Mexico is a key oil-producing region for the United States, and weather conditions there often affect production operations and global prices.