Oil futures climbed Tuesday, with U.S. futures edging above $70 a barrel, on concerns that a looming tropical storm off the U.S. Gulf Coast could hit oil production.
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Tropical Storm Gordon is expected to become a hurricane when it makes landfall along the Gulf of Mexico coastline late Tuesday. Some oil producers have taken precautionary measures, shutting production at offshore oil platforms.
Other factors that boosted prices include concerns that Iranian supply will drop as a result of U.S. sanctions and more violence in Libya.
The October oil futures contract expired on Friday, finishing the month with a gain of about 3.2 percent. On Monday, U.S. oil futures were trading above $70 a barrel.
Meanwhile, Barclays said in a note on Tuesday that the oil markets “have changed” since 2017, and, as reported by Reuters, Brent crude prices could reach $80 or higher in the short term. For 2020, the bank expects the international oil benchmark to average $75, up from its prior forecast for $55.