Energy commodities soared on Tuesday amid improving demand prospects and potential supply disruptions. Expected easing measures from the ECB and PBOC are likely to boost demand while hurricane may impact oil production in the Gulf of Mexico.
Crude oil jumped 1.59%, attaining 12-week high as output from the North Sea continued to fall. Persistent tensions in the Middle East also lent support for crude oil futures.
Brent oil surged after fire damaged the second biggest refinery in California. Adding to supply risk-premium, tropical storm, Ernesto, is expected to move to the southern part of the Gulf of Mexico.
Natural gas was sharply higher on potential demand increase as hot and dry weather in the US is likely to persist.
Heating oil prices increased ahead of the US supply data due on Wednesday. Supply concerns from the Gulf of Mexico also boosted heating oil futures.