Oil prices rose on Tuesday after a fire on a Petróleos Mexicanos (Pemex) processing platform in the Gulf of Mexico slashed 421,000 b/d from Mexico’s oil supply.

Pemex

West Texas Intermediate (WTI) for October settled at $67.54 on Tuesday, up $1.90 day/day.

“Bottom pickers jumped into the void on the open on Sunday night, and then rode the Pemex 421,000 b/d platform fire for a two day gain of around 8% following a slide of 8.94% last week,” Mizuho Securities USA LLC’s Robert Yawger, director of energy futures said in a note to clients Tuesday regarding WTI prices.

The fire at the Pemex platform is also a negative for Gulf Coast refiners, Yawger said.  

“U.S. refiners run Mexican crude oil for size, and several refineries are configured to maximize yields from Mexican...