Oil prices rose more than 2% on Monday as escalating Houthi attacks in Saudi Arabia, a tanker strike in the Persian Gulf, and growing U.S. offshore production shut-ins ahead of Hurricane Isaias tightened supply concerns.
Brent crude climbed $1.05, or 2.4%, to $44.40 a barrel, while West Texas Intermediate rose $1.01, or 2.5%, to $41.29 a barrel. The gains came despite lingering demand worries from the coronavirus pandemic.
Houthi rebels claimed responsibility for attacks on Saudi energy facilities, including an Aramco facility in Jizan, raising fears of supply disruption from the world's largest oil exporter. Separately, a strike by tanker crews in the Persian Gulf added to logistical bottlenecks.
In the U.S., energy companies evacuated platforms and shut in 1.5 million barrels per day of oil production — about 84% of Gulf of Mexico output — as Hurricane Isaias tracked toward the coast. The combined effect of geopolitical tension and weather-related shut-ins provided a floor for prices.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing