Global oil prices pushed past the $73 mark this morning as crude supplies tightened on the back of Hurricane Ida.
Worldwide standard Brent crude rose 2.2 per cent to $73.02, while US benchmark West Texas Intermediate rose 2.4 per cent to $69.80.
Since Ida made landfall in the US at the end of August, causing devastation along the eastern seaboard, about three-quarters of US offshore production has stayed offline.
That’s equivalent to about 1.4m barrels of crude a day.
In addition, prices were boosted by reports of the first call in seven months between President Joe Biden and his Chinese counterpart Xi Jinping.
Analysts said that the call raised hopes of improved relations between the world’s two largest economies.
OANDA senior market analyst Jeffrey Halley said: “The Biden/Xi phone call has had the same effect on oil markets as it has other asset classes, with any hope that US/China relations, no matter how small, are construed as positive for global trade and basically almost every asset.”