14:46 ET – US benchmark oil prices end the session sharply higher, rising 2.7%, to close at $38.28 a barrel as slow-moving Hurricane Sally forces more cuts to offshore oil production in the Gulf of Mexico. Some 27% of offshore Gulf of Mexico oil production, or nearly 500k bpd, has been temporarily halted as companies evacuate workers and turn off the taps for safety. That 5% reduction in total US oil output is tightening otherwise robust supplies, leading investors to cover short bets, says Peter Cardillo at Spartan Capital. “It’s a temporary [price] rise, but the market remains weak technically,” he tells WSJ, adding prices could fall again once the storm blows over.
(END) Dow Jones Newswires
September 15, 2020 14:46 ET (18:46 GMT)
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