Oil prices close 3.5% higher, Brent above $89

Oil drilling rigs

Oil prices closed higher today, Sept. 28, as supplies in the Gulf of Mexico were affected due to the hurricane. In addition, data showed an unexpected drop in US inventories.

About 9.1% of oil production and 5.95% of natural gas supplies were suspended in the Gulf of Mexico due to Hurricane Ida, which is approaching the coast of Florida.

Meanwhile, data from the US Energy Information Administration showed that oil inventories fell by 200,000 barrels in the week ended Sept. 23, contrary to expectations of a 400,000 barrels rise.

Gasoline stocks fell in the US by 2.4 million barrels, and the production of US crude oil fell 100,000 barrels to 12 million barrels per day last week.

On the other hand, the leak near the Nord Stream pipelines raised concerns about the escalation of the energy dispute between Russia and Europe.

Crude prices received some support after a Reuters report indicated that Russia may demand that the OPEC+ reduce supply by about one million barrels per day.

Brent crude rose 3.5%, or $3.05, to close at $89.32 a barrel. WTI crude also rose by 4.7%, or $3.65, to $82.15 a barrel.