Oil prices rise as Gulf of Mexico platforms evacuated

Oil prices rose on Tuesday, with US crude breaking through $70/bbl after the evacuation of two Gulf of Mexico oil platforms.

Offshore staff

LONDON/NEW YORK CITY – Oil prices rose on Tuesday, with US crude breaking through $70/bbl after the evacuation of two Gulf of Mexico oil platforms in preparation for a hurricane.

US light crude traded at $70.60/bbl, up 80 cents from its close on Aug. 31. Brent crude was at $78.50/bbl, up 35 cents from Monday's close, according to Reuters.

Anadarko Petroleum Corp. said on Monday that it had evacuated and shut production at two oil platforms in the Gulf of Mexico ahead of the approach of Gordon, which is expected to come ashore as a hurricane.

Global oil markets have tightened over the last month, pushing up Brent prices by more than 10% since the middle of August. Barclays bank said on Tuesday oil markets had changed since 2017, when worries about rising supply were more evident.

Oil prices could reach $80/bbl and higher in the short term, Barclays is reported to have said. For 2020, it said it expected Brent to average $75/bbl, up from its previous forecast of $55/bbl.

09/04/2018

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