Oil Price Rises: Fear of Hurricanes Damage in Gulf of Mexico

The price of crude oil, for processing into petrol and diesel, has risen to the highest weekly increase in nearly a year on Friday.

The prize is mainly on now in the Gulf of Mexico a number of drilling rigs have been shut down in anticipation of the tropical storm front called Ida. Ida is expected to be on the coast at Louisana on Monday.

Oil companies take their staff away in the course of expected major damage caused by the traditional hurricanes season in the oil-rich region.

Brent costs almost 1.7% more on Friday at $72.20 per barrel.

In a week, a barrel of Brent oil was worth 9% more, although the fuel plummeted by 7% last week. Since June 2020, the rise has not been so strong.

Recently, U.S. oil stocks have decline. The price is also moving ahead of the OPEC meeting on September 1 with partners. It is uncertain whether OPEC wants to continue its old production addition due to disruptions in the economy.

With the delta variant aggressively emerging, more companies are closed, and demand is faltering. Oil buyers provide a temporarily lower demand for black fuel.