Oil prices rise as focus falls on new hurricane

Oil prices rose yesterday as strong global refining margins and the reopening of US Gulf Coast refineries provided a more bullish outlook after sharp drops due to Hurricane Harvey.

However, traders were wary of Hurricane Irma, rated the most powerful Category 5 storm, which was closing in on the Virgin Islands and headed towards Florida at the weekend, raising concerns that it could knock out a major demand centre and cause more fuel shortages.

Brent gained 65c to $54.03 a barrel at one stage and US West Texas Intermediate crude futures were up 60c at $49.26 a barrel.