Oil prices increased on Wednesday over paused oil production in the Gulf of Mexico due to tropical storm Sally and with a more-than-expected US crude oil inventory draw.
International benchmark Brent crude was trading at $41.08 per barrel at 0610 GMT for a 1.35% increase after closing Monday at $40.53 a barrel.
American benchmark West Texas Intermediate (WTI) was at $38.86 a barrel at the same time for a 1.52% increase after ending the previous session at $38.28 per barrel.
Oil prices soared as Hurricane Sally halted operations on offshore oil and gas platforms and rigs in the Gulf of Mexico.
According to the US Bureau of Safety and Environmental Enforcement (BSEE), 26.87% of the current oil production and 28.03% of the natural gas production in the Gulf of Mexico were shut-in.
Late Tuesday, the American Petroleum Institute (API) announced its estimate of a sharp fall of 9.5 million barrels in US crude oil inventories last week, more than the expected 2.04 million-barrel draw.
However, the uncertainty about the novel coronavirus (COVID-19) outbreak, which is negatively affecting the global economy, continues to suppress international oil prices.
"As the second wave of coronavirus is hitting Europe again, especially Spain and France, or India as the hardest-hit country so far, once again demand concerns for oil going back to low levels revive while markets are waiting to see the next moves by OPEC+ in its upcoming JMMC [Joint Ministerial Monitoring Committee] on Sept. 17,” Oil Analyst Jose Chalhoub told Anadolu Agency.
The number of COVID-19 cases worldwide is now over 29 million, according to the latest data from Johns Hopkins University.
While the US still tops the number of cases with 6.6 million as of Wednesday morning, India has increased its cases to more than 5 million, and Brazil follows with over 4.3 million cases.
By Firdevs Yuksel and Sibel Morrow