Mexico oil supply threatened, price up

Worries were exacerbated over oil prices today (October 29th) as production in Mexico remained under threat.

Storms in the Gulf of Mexico have led Mexican state-owned oil company Pernex to shut down as much as one fifth of its output capacity, with the potential for further closures.

Geopolitical tensions in the Middle East have recently taken their toll on the price of crude oil, sending it soaring over $90 per barrel as supply routes were threatened.

Problems in the Gulf of Mexico have exacerbated price concerns, with Pernex shitting wells of 200,000 barrels per day production and considering further closures.

The company has not yet, evacuated staff from oil platforms, however, issuing confidence in the storms passing and production recovering quickly.

Spiraling oil prices have fuelled inflation concerns and spread uncertainty in the market – meanwhile investors looking to buy gold as a safe-haven option have multiplied in number.