Oil Prices Nudge Up Ahead of Hurricane Michael

Investing.com – Crude prices nudged higher on Tuesday, after companies operating in the Gulf of Mexico shut down nearly 20% of oil production as moved towards eastern Gulf states including Florida.

As Michael moved over open water, energy companies halted nearly one-fifth of Gulf of Mexico oil production and evacuated personnel from 10 platforms on Monday.

Michael could grow to a Category 3 storm on the five-step Saffir-Simpson scale before it makes landfall on Wednesday, forecasters said, potentially the most powerful storm to strike the Panhandle in at least a decade.

November , the U.S. benchmark contract, tacked on 37 cents, or around 0.5%, to $74.66 a barrel at 9:45AM ET (1345GMT) on the New York Mercantile Exchange.

Meanwhile, international benchmark futures were at $84.47 a barrel on ICE Futures Europe, up 56 cents, or about 0.7%.

Oil prices also rose as more evidence emerged that crude exports from Iran are in the run-up to the re-imposition of U.S. sanctions next month.

U.S. sanctions will target Iran’s crude oil exports from Nov. 4, and Washington has been putting pressure on governments and companies worldwide to cut their imports to zero.

The sanctions are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.

Iran is the third-biggest producer in the Organization of the Petroleum Exporting Countries (OPEC), supplying around 2.5 million barrels per day (bpd) of crude and condensate to markets this year, equivalent to around 2.5% of global consumption.

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