Citing the tropical storm in the Gulf of Mexico on Monday, oil prices surged beyond the expectations. The storm coerced companies to evacuate rigs and stop production. However, profits were kept in check due to the looming concerns of falling demand and higher supply.
The WTI (U.S. West Texas Intermediate) crude futures rose to $37.51 per barrel, which is an increase of 0.5 per cent of 18 cents by 0514 GMT.
Brent Crude stood at $39.92, as per the last report, which is 0.2 per cent or 9 cents gain. Notably, both the contracts fell flat in the past two weeks in a row.
On Sunday, in the West of Florida, the category 2 hurricane Storm Sally gained strength (Gulf of Mexico). The ongoing natural calamity has disrupted oil production.