(Bloomberg) – Oil rose after falling for two days, with Hurricane Ida still impacting U.S. crude production three weeks after making landfall.

New York futures have climbed to around $ 71 a barrel after losing more than 3% in the past two sessions. Royal Dutch Shell Plc has said production at two of its largest Gulf of Mexico fields will not resume until next year due to damage from Ida. The market is also focused on a global energy crisis, particularly for natural gas, which could increase demand for crude.

Oil has resumed its advance over the past four weeks, in part due to a tightening market following continued supply disruptions caused by the storms that swept through the Gulf of Mexico. U.S. crude inventories are expected to have declined by more than 3 million barrels last week, according to a Bloomberg survey, which would lower inventories to a 2018 low.

“Oil prices will continue to be high towards the end of the year,” said Suvro Sarkar, energy analyst for DBS Bank Ltd., citing the change in fuel due to high gas prices and the recovery in gasoline. global demand exceeding increases in supply from OPEC +.

The quick time frame for Brent was 87 cents per barrel in offset – a bullish pattern where near-maturity contracts are more expensive than more distant ones. This compares to 63 cents a week earlier.

See also: U.S. Sour Mars crude rises after Shell warns of long outage

The outage of Shell, the largest oil producer in the US Gulf sector, will disrupt about 300,000 barrels of daily production capacity, according to Bloomberg Intelligence, or one in six barrels pumped in the region. The disruption is forcing refiners and other buyers to seek alternative supplies.

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