2020.08.2419:00:00UTC+00Oil Prices Spike On Gulf Hurricane Prospects

Oil prices jumped on Monday as the threat of hurricanes in the Caribbean and the Gulf of Mexico brought oil production to a halt.

Prices were also supported by hopes for a coronavirus treatment as well as signs of a thaw in U.S.-China tensions.

Benchmark Brent crude rose 76 cents or 1.72 percent to $45.02 a barrel, while American benchmark West Texas Intermediate (WTI) crude futures were up 31 cents or 0.72 percent at $42.58 a barrel.

Oil production was disrupted as Hurricane Marco and Tropical Storm Laura tore through the Caribbean and Gulf of Mexico on Sunday, forcing some refiners to shut down oil production.

Energy companies evacuated workers from more than 100 production platforms and shut more than 1 million barrels per day (bpd) of offshore crude oil production in the U.S. Gulf of Mexico because of the threat of back-to-back storms.

Risk sentiment also received a boost after the U.S. FDA announced an emergency use authorization for the use of convalescent plasma in helping treat patients with COVID-19.

Also, reports suggest that Trump's team is privately seeking to reassure U.S. companies that they can still do business with the WeChat messaging app in China.