Oil rises over 1% as Gulf of Mexico production halts

Oil prices rose more than 1% as the US market opened on Monday, to head for the first daily gain in 3 days, as around 60% of the offshore oil production in the Gulf of Mexico was disrupted due to the threat of storms hitting one of the most important production regions in the US.

US crude rose 1.2% to $42.79 a barrel, after opening at $42.27, and hit a session-low of $42.26, while Brent rose 1.4% to $44.84, after opening at $44.19, with a low of $44.19. 

The US crude fell 1.3% on Friday, and Brent crude futures lost 1.3%, posting their second straight daily loss, on concerns over global demand levels. 

Hurricane "Marco" and tropical storm "Laura" hit the Gulf of Mexico on Sunday, forcing energy companies to to remove workers from offshore rigs and suspend oil production.

About 60% of offshore oil production in the region was shut down, which is the equivalent of 17% of the total US oil production.

As for the US production, it held during the week ending August 14 at 10.7 million barrels per day, the lowest level since the week ending June 12, but the US remains the world's largest oil producer.