Oil gains on tight US stocks, Mexico port closures

BOSTON, Dec 24 (Reuters) – Oil prices rose on Monday in thin trading as dealers anticipated a further tightening of U.S. energy stockpiles and foul weather forced Mexico to shut two key oil ports.

The gains, however, were tempered by forecasts that mild weather in the Northeast would slash demand for fuel in the world’s largest heating oil market.


… U.S. oil inventories are already at their lowest level in nearly three years after dense sea fog along the Gulf Coast slowed down imports.

More support for oil prices came from news on Monday that foul weather shut down two Mexican oil ports, potentially further slowing shipments into the United States.

Mexico’s transport ministry said the ports of Dos Bocas and Cayo Arcas, both located on the Gulf of Mexico, were shut for the second straight day, while Coatzacoalcos port reopened after being closed Sunday afternoon.

Reuters