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Oil Rallies As Hurricane Forecasts Result in Shutdown of Two Rigs

September 4, 2018 at 16:07 by Vladimir Vyun

Prices for crude rallied today after two rigs were closed following the forecasts of a hurricane in the Gulf of Mexico. Weather forecasters predicted that the hurricane will hit the Gulf coast tonight. As a result, Anadarko Petroleum Corp evacuated workers from Horn Mountain and Marlin facilities.

The halt of production will reduce supply on the market, which was already tight due to the US sanctions against Iran and other factors. As Michael Dei-Michei, head of research at Vienna consultancy JBC Energy, explained to Reuters:

With ship-tracking data now pointing at a reduction in Iranian exports, renewed strife in Libya, and Venezuelan export availability hobbled by an accident at the key Jose terminal, the list of bullish headlines is getting longer.

Futures for delivery of WTI crude oil in October climbed 0.54% to $70.18 per barrel as of 15:53 GMT on NYMEX today. November contract for Brent crude advanced 0.51% to $78.55 per barrel on ICE.

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