Tropical Storm Barry Cuts Oil Production In Mexico – 11 July, 2019

In preparation for a possible tropical storm off the coast of Mexico, U.S. oil producers cut their output in half, which, coupled with ongoing tensions in the Middle East, caused oil prices to rise. U.S. West Texas Intermediate crude futures rose by 0.6% and 34 cents to $60.54 per barrel. It hit its highest since May 23 at $60.94 earlier in the day. International Brent crude futures rose 0.6% and 37 cents to $66.89 per barrel, before settling 0.7% lower to $67.52, its highest since May 30 when it reached $60.94 per barrel. Companies dropped production by 1 million barrels per day, roughly 53% of its production, in preparation for Tropical Storm Barry which is forecast to bring winds speed to at least 74 miles per hour. New tension between Iran and British tankers escalated Middle Eastern strains, adding fuel to the fire that has been brewing in the region.