Oil at six-week high on Gulf of Mexico storm, supply decline

By EnergyFOXBusiness

Not a surprise OPEC, Russia decided to extend their cuts: Oil analyst

Lipow Oil Associates President Andy Lipow on the outlook for oil prices.

Oil prices continue to climb as a storm in the Gulf of Mexico has forced producers to evacuate platforms.

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Production in the Gulf was cut nearly by a third on Wednesday by the evacuations.

Also adding to concern is an incident with a British tanker in the Middle East.

Brent crude futures rebounded from early losses and were at $67.41 a barrel. Brent rose 4.4 percent in the prior session.

U.S. West Texas Intermediate crude futures were at $60.76 a barrel, having earlier touched their highest since May 23 at $60.94. They gained 4.5 percent in the previous session.

According to the British government, three Iranian vessels tried to block the passage of a British ship run by BP through the Strait of Hormuz.

A decline in U.S. inventories also gave a boost to oil prices. Supplies fell by 9.5 million barrels in the week ending July 5, according to the  Energy Information Administration.

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That was more than the 3.1 million-barrel decline analysts had expected. That makes four straight weeks of inventory declines.