Crude oil futures ended sharply higher with rally of over two percent on Tuesday on reports that producers have slowed down production in the US Gulf of Mexico ahead of Hurricane Ian. About 11% of oil production and 8.56% of natural gas production in the Mexican gulf region has been shut due to the storm, which has advanced to the west coast of Florida. Meanwhile, there is expectation that the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, may take action to stem the drop in prices by cutting supply also lent support. OPEC+ meets to set policy on October 5.
Benchmark crude oil futures for November delivery rose $1.79 or about 2.3 percent at $78.50 a barrel on the New York Mercantile Exchange. Brent crude for November delivery gained $2.22 or about 2.68 percent to settle at $85.08 (Provisional) a barrel on London's Intercontinental Exchange.