Oil prices rise; Brent crosses $74

oil rig

Oil prices extended gains on Tuesday, edging close to a six-week high, as Tropical Storm Nicholas headed to coast of Texas, further pressuring the US industry that is already struggling to return production after Hurricane Ida.

The international benchmark Brent crude was trading up 0.7% at $74.02 per barrel, at 9.05 am Makkah time.

WTI crude rose 0.7% to $70.96 per barrel.

"Concerns over Nicholas prompted buying as it is likely to hit the area devastated by Ida though the force is not expected to be as strong as Ida," Reuters reported, citing Hiroyuki Kikukawa, general manager of research at Nissan Securities.

Two weeks after Hurricane Ida hit the Louisiana coast, more than 40% of the US Gulf's oil and gas output remained suspended on Monday, Sept. 13.

Meanwhile, the Energy Information Administration (EIA) said US oil output from seven major shale formations is expected to rise by about 66,000 bpd in Oct. to 8.1 million barrels per day, the highest since April 2020.