⁍ Oil rose on Tuesday towards $41 a barrel as oil companies shut down some U.S. Gulf of Mexico oil output due to a hurricane.

---

⁍ However, surging coronavirus infections and rising Libyan supply limited gains.

---

– Hurricane Zeta has shut in 16% of US oil and gas production in the Gulf of Mexico, Reuters reports. Oil companies including BP, Chevron, and Equinor have evacuated their rigs, and so far some 293,656 barrels per day of oil output has been shut in. The storm is expected to hit the Gulf as a Category 1 hurricane tomorrow. “Whilst Hurricane Zeta could provide a price relief under the current circumstances, it will be very brief,” says an oil broker. “The mood is, indeed, souring.” Meanwhile, coronavirus infections are rising around the world, and US officials are still trying to figure out how to deal with the outbreak. House Speaker Nancy Pelosi is hopeful a deal can be reached before the election. “The rising number of infections, lockdowns, and travel restrictions is a serious threat,” says an energy analyst. “The situation at the moment looks more pessimistic than not.’ Libyan production is expected to reach 1 million bpd in coming weeks, the country’s national oil company said on Friday, complicating efforts by other OPEC members and allies to restrict output. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, are planning to increase production by 2 million bpd from January after record output cuts this year. But Russian President Vladimir Putin, speaking last Thursday, did not rule out extending the cuts for longer. The latest US inventory figures due later today and Wednesday are expected to show rising supplies. Analysts expect crude stocks to rise by about 1.1 million barrels.