Oil rose near $40 a barrel in New York with the market turning its attention to a hurricane that’s caused widespread shut-ins to Gulf of Mexico output. Energy operators in the Gulf of Mexico have shut 80% of oil output in preparation for Hurricane Delta, which barreled across the Yucatan Peninsula and is poised to hit the Louisiana coast on Friday. Stock markets also edged higher on Thursday on hopes that American lawmakers will reach a stimulus deal.

Crude has struggled to move too far away from $40 a barrel since June

Oil remains tied to the $40 marker as the conflicted forces of American stimulus measures and flagging demand keep prices in check. There’s also the question of OPEC+’s next plan of action, with Vitol Group expecting the organization to change course on plans to relax output cuts in January. For now though, focus remains on one of the most active hurricane seasons in recent memory.

Hurricane Delta has supported the latest recovery,” in prices, said Ole Hansen, head of commodities strategy at Saxo Bank. “Renewed stimulus hopes have generally given assets a risk-on boost.”

PRICES
  • West Texas Intermediate for November delivery added 1.2% to $40.44 a barrel as of 10:00 a.m. London time
  • Brent for December settlement gained 1.5% to $42.60