Oversupply concerns in the US, global oil futures are rising

Crude oil futures rose Friday due to supply concerns about Hurricane Ida’s effect on offshore US output.

The November Brent crude oil futures contract on the Intercontinental Exchange are currently trading at $72.50 a barrel, which is 1.47 percent higher than its previous close.

The October contract for WTI crude oil on the New York Mercantile Exchange was also trading at $69.13/barrel, an increase of 1.45 percent from its previous close.

According to reports, Hurricane Ida has had a severe impact on the daily output of the Gulf of Mexico producers who are still trying to restart operations just days after Ida hit the region.

To address the fuel shortage caused Hurricane Ida, the US President Joe Biden had just announced that 1.5 million barrels of crude oil would be released from the country’s Strategic Petroleum Reserve.