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Crude Oil Futures Close Sharply Higher Again

Crude Oil Futures Close Sharply Higher Again

Crude oil prices moved higher on Tuesday and the front-month futures contract settled with strong gains for a second successive day as supply disruptions in Norway and expectations of a U.S. stimulus plan supported the commodity.

News that Tropical Storm Delta has strengthened to a Category 2 hurricane and is set to make a landfall on Thursday between Louisiana and Florida, contributed as well to oil’s uptick.

West Texas Intermediate Crude oil futures for November ended up $1.45 or about 3.7% at $40.67 a barrel.

Brent crude futures moved up $1.40 or about 3.4% to $42.69 a barrel.

On Monday, WTI futures for November ended with a gain of $2.17 or about 5.9% at $39.22 a barrel.

The strike by oil workers in Norway is likely to significantly impact crude output from the country. According to the Norwegian Oil and Gas Association, the strike could cut Norway’s total output by about 8%.

According to reports, energy companies have shut offshore oil platforms in the Gulf of Mexico.

On coronavirus relief bill talks front, House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin are expected to continue their discussions today to work out a deal on legislation.

The two reportedly spoke by phone for about an hour about coronavirus relief on Monday, but emerged without an agreement.

The material has been provided by InstaForex Company – www.instaforex.com