Oil and petroleum products are expected to move upward following the resumption of production in the US Gulf of Mexico.
In the previous days, oil and petroleum production in Louisiana and the near region temporarily halted production in preparation for Hurricane Barry. Oil futures shortly declined during the storm.
Producers are now restoring output, oil workers have resumed their jobs and returned to their production platforms.
Crude oil WTI futures gained 0.27% or 0.16 points, barrels of the medium crude oil currently cost around 59.74 USD.
Benchmark Brent oil futures rose 0.29% or 0.19 points. A barrel of Brent oil presently trades at 66.67 USD.
Analysts are expecting that it will take several days or more for the full-blown resumption of oil productions in the US Gulf region in Mexico.
Meanwhile, the sudden increase in oil and petroleum output production in the United States had overburden prices preventing it from rallying.
US’ increase in oil output had skyrocketed the economic giant to become the biggest crude oil producer in the globe. Soon moving ahead of Saudi Arabi and Russia.
Oil bulls are hoping for a rally of oil and petroleum products after a report from an energy consultancy agency.
According to the report, oil prices could hypothetically leap an extensive $15-20 per barrel if Tehran chooses to block the chokepoint of the Gulf.
Tensions between Iran and other countries may potentially push Iran to restrain passage in the Strait of Hormuz.
The report also said that if that scenario pushes through, interference by the United States forces could ease oil and petroleum prices.
Brent oil could also spike as high as $80-90 a barrel if Iran chooses to act radically. However, according to the report, it would easily lower down once the conflict ends and the United States and Iran negotiates.