Oil prices rose over 1 percent on Monday amid concerns over U.S. supplies due to the impact of Hurricane Ida.
About three-quarters of the offshore oil production in the Gulf of Mexico, or about 1.4 million barrels per day, has remained halted since late August.
Last week’s EIA data showing declines in crude oil, gasoline and distillate stockpiles in the U.S. also supported oil’s advance.
Benchmark Brent crude futures climbed 83 cents, or 1.1 percent, to $73.75 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 89 cents, or 1.3 percent, at $70.61.
Hurricane Ida had a larger impact on oil production than on refinery demand, causing a net “bullish” impact on U.S. and global storage levels, Goldman Sachs said in a report.
The investment bank described the hit to U.S. output as “historically large” and expects almost 40 million barrels of crude production to be lost, with challenges restarting the Mars stream likely until mid-October.
Later today, OPEC is scheduled to release its latest monthly assessment of worldwide supply and demand.