Menu
Commodities news Energy Commodities

Oil price rises as Anadarko evacuates Gulf of Mexico rigs

Share this article!

The oil price is higher Tuesday, amid news Anadarko petroleum has evacuated its two rigs based in the Gulf of Mexico, as Hurricane Gordon approaches the area. The shutdown of the two rigs is exacerbating existing fears over future oil production capacity, as the date on which US Iran oil sanctions are in place, draws closer.

By around 1420 BST, the price of Brent Crude oil was 1.68% higher at $79.46 per barrel. Meanwhile, the price of US WTI crude was 2.05% in the green at $71.23 per barrel.

Anadarko rig shut down

Anadarko Petroleum confirmed its action of evacuating its two Gulf of Mexico-based rigs, in the face of hurricane Gordon.

“We are carefully monitoring the weather conditions in the eastern Gulf of Mexico, and to ensure the safety of our people have removed all personnel from our Horn Mountain and Marlin facilities,” Anadarko said in a statement.

“We have also shut in production at both platforms to protect the environment. All other Anadarko operated and producing platforms remain on production. We will return personnel to Horn Mountain and Marlin when it is safe to do so,” it added.

Oil price could rise 30%

Meanwhile, even without the shutdown of the two oil rigs this week, energy experts suggest the oil price could rise by some 30% in the coming months.

Speaking to CNBC, energy expert John Kilduff said the price of oil could rise to $95 per barrel in just a few months, spurred by incoming Iran oil sanctions, amid an already tight production backdrop.

“The global market is tight and it's getting tighter, and the big strangle around the market right now is what's in the process of happening with Iran and the Iran sanctions,” Kilduff told CNBC's ‘Futures Now’.

“These Iranian barrels that we're going to lose, it's really going to hurt. It's really going to make a difference and tip the scale in my view to an upside surprise,” he added.

Add Comment

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.