Oil prices increased on Tuesday after oil production was paused in the Gulf of Mexico due to tropical storm Sally.
International benchmark Brent crude was trading at $39.99 per barrel at 0920 GMT for a 0.96% increase after closing Monday at $39.61 a barrel.
American benchmark West Texas Intermediate (WTI) was at $37.62 a barrel at the same time for a 0.96% increase after ending the previous session at $37.26 per barrel.
Oil prices increased as the anticipated storm Sally brought production to a halt in many offshore platforms and oil rigs in the Gulf of Mexico.
Many oil companies, including Chevron and Murphy Oil Corp., paused their production activities and evacuated their staff.
According to the US Bureau of Safety and Environmental Enforcement (BSEE), approximately 21.39% of the current oil production and 25.28% of the natural gas production in the Gulf of Mexico were shut-in.
The positive developments in the vaccine trials of an antibody-drug to prevent and treat COVID-19 were also among the factors that supported prices.
Lingering demand concerns caused by the rapid coronavirus spread and second wave fears continue to put downward pressure on oil prices.
The downward pressure was also supported following Libya’s National Oil Corporation's resumption of oil production after armed groups affiliated with Halifa Haftar’s Libyan National Army lifted the blockade on oil ports and wells.
By Sibel Morrow