WTI crude futures jumped nearly 1% to above $71 a barrel on Tuesday after sinking by 2% Monday. It is the first gain in three sessions, amid signs of US supply tightness. Royal Dutch Shell, the largest US Gulf of Mexico oil producer, said Monday that damage to offshore transfer facilities from Hurricane Ida will cut production into early next year. About 18% of the US Gulf’s oil and 27% of its natural gas production remained offline on Monday. News that the US will reopen in November to air travelers who are fully vaccinated against COVID-19 from 33 countries, including from China, India, Brazil, and most of Europe, also buoyed sentiment. Meantime, Goldman Sachs said that with the surge in global gas prices, a colder winter in Europe and Asia could in turn boost demand for oil. Bank of America Global Research, meanwhile, said recently that a much colder than normal winter could lead global oil demand to surge by 1 to 2 million barrels per day.
