Oil ends higher as Hurricane Delta cuts Gulf oil output, Saudis reportedly consider scrapping plans to lift production

/ / News

Oil futures settled higher on Thursday as Hurricane Delta led to further output cuts in the Gulf of Mexico. The U.S. Bureau of Safety and Environmental Enforcement estimated that 91.53% of Gulf oil production and 61.82% of natural-gas output was shut in as of Thursday afternoon, with the hurricane moving across the Western Gulf of Mexico. Saudi Arabia, meanwhile, was considering a cancellation of OPEC’s plans to boost oil output early next year, according to The Wall Street Journal. “The Saudi reluctance to raise output should solidify an oil bottom,” Phil Flynn, senior market analyst at The Price Futures Group, told MarketWatch. With uncertainty surrounding a second wave of COVID-19 cases and the success that OPEC+ has had, and with global supply tightening, “why change course?” November West Texas Intermediate crude rose $1.24, or 3.1%, to settle at $41.19 a barrel on the New York Mercantile Exchange.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.