Oil futures settle above $40 as U.S. supplies decline and Hurricane Sally leads to output cuts

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Oil futures rallied Wednesday, with U.S. prices up nearly 5% after the Energy Information Administration reported a 4.4 million-barrel weekly decline in domestic crude inventories. Production in the Gulf of Mexico, meanwhile, was down by 508,366 barrels a day in the Gulf of Mexico, with 27.48% of the region’s oil output shut in as of Wednesday, according to the Bureau of Safety and Environmental Enforcement. That’s up from shut ins of 26.87% on Tuesday. For natural gas, 29.7% of output was shut in, higher than Tuesday’s 28.03%. October West Texas Intermediate oil settled at $40.16 a barrel, up $1.88, or 4.9%, on the New York Mercantile Exchange.
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