Oil is up at a more than 2-week high on two factors: the first is a natural phenomenon and the second is a bigger than forecast draw on oil inventories. Investors are increasingly worried about Hurricane Idalia, which is churning over the Gulf of Mexico. According to the EIA, the offshore Gulf of Mexico accounts for about 15% of US oil output and about 5% of natural gas production and some if not all of that is under threat because of hurricane disruption. Also, the American Petroleum Institute reported a 11.5-million-barrel fall in crude oil stocks, when analysts expected a drop of only 2.9 million barrels – another reason to expect tighter supplies and higher crude prices.
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