Oil rises as storm batters US Gulf of Mexico output

US West Texas Intermediate crude futures rose by US$1.66, or 2.5%, to settle at US$68.97 per barrel. Brent crude futures rose by US$1.36, or 1.9%, to US$71.97 per barrel.

NEW YORK: Oil prices rose over 2% on Thursday as producers assessed the impact on output in the US Gulf of Mexico after Hurricane Francine tore through offshore oil-producing areas before being downgraded to a tropical storm.

Over 730,000 barrels per day, or nearly 42%, of Gulf of Mexico oil output was shut-in due to storm Francine on Thursday, the US Bureau of Safety and Environmental Enforcement said.