APA – Oil prices were mixed on Monday with U.S. crude rising as a tropical storm in the Gulf of Mexico forced rigs to shut down, but the gains were kept in check by wider concerns about excess supply and falling demand for fuels, APA reports quoting Reuters.
U.S. West Texas Intermediate (WTI) crude futures were up 9 cents, or 0.2%, at $37.42 a barrel by around 0050 GMT. Brent crude was down 3 cents at $39.80 a barrel.
Both contracts ended last week lower, a second consecutive week of declines.
Tropical Storm Sally gained in strength in the Gulf of Mexico west of Florida on Sunday and was poised to become a category 2 hurricane. The storm is disrupting oil production for the second time in less than a month after hurricane Laura swept through the region.
Typically oil rises when production is shut but with the coronavirus pandemic getting worse demand concerns are to the fore, while global supplies continue to rise.