Oil started to recover as commodity prices jumped more than 1% on Friday. A day earlier as crude oil prices fell more than 3%, hitting a three-week low amid selling on the global market due to concerns about rising interest rates. However, futures for the US stock index indicate that markets will recover during today’s session.
Hurricane Michael and oil prices
At the same time, crude oil prices also supported a 40% reduction in oil production in the Gulf of Mexico as a result of Hurricane Michael, who hit Florida earlier this week as a Category 4 hurricane before turning into a tropical storm. The storm has caused a number of major oil companies to close platforms in the Gulf, but some companies have begun to return staff to the region as the hurricane moves inside.
At least six people have been killed in Florida, Georgia and North Carolina by tropical storm Michael as it continues through the southeastern United States, bringing strong winds and rain to the floods.
Governor of Virginia Ralph Northam announced a state of emergency before the impact of the storm. “I want to urge all residents of Virginia to prepare for the possibility of sudden flooding, tropical storm winds, storms, and power outages,” Northam said in a statement.
Rising US stocks
The Energy Information Administration (EIA) revealed that US oil inventories rose by about 6 million barrels to 410 million barrels during the week ending October 5, compared to expectations of a rise of 2.62 million barrels.
