Oil climbs due to slow return of US supply after Hurricane Ida
- About 79% of US Gulf production went offline on Tuesday
- Refineries resume operations faster
MELBOURNE / SINGAPORE, September 8 (Reuters) – Oil prices soared on Wednesday, recouping some overnight losses from a stronger dollar and demand concerns, with a slow restart of production in the Gulf of Mexico to the United States and the resumption of supporting refining activities.
US West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.6%, to $ 68.78 a barrel at 0643 GMT, after slipping 1.4% on Tuesday after the Friday holiday. Job.
Brent crude futures gained 34 cents, or 0.5%, to $ 72.03 a barrel after falling 0.7% on Tuesday.
“The market (…) weighs the impact of persistent delays in resuming operations in the Gulf of Mexico,” ANZ Research analysts said in a note.
Gulf producers are still struggling to restart operations nine days after Hurricane Ida swept through the region with powerful winds and torrential rains.
About 79% of the US Gulf’s production went offline on Tuesday, with 79 production platforms still unoccupied. About 17.5 million barrels of oil have been lost in the market so far. Read more
Offshore Gulf wells represent around 17% of US production.
“Refining operations appear to be recovering faster,” ING analysts said in a note.
Only around 1 million barrels per day of capacity has been temporarily shut down, up from a peak of more than 2 million barrels per day, ING said, citing the Energy Ministry’s latest situation report.
“However, the restarted refineries are unlikely to be operating at full capacity at the moment,” the note added.
Traders will closely monitor inventory data from the American Petroleum Institute industry group due Wednesday and the US Energy Information Administration on Thursday for a clearer picture of the storm’s impact on crude production and the exit of crude oil. refineries.
Analysts polled by Reuters expect, on average, crude inventories to decline by 3.8 million barrels in the week to September 3, and see gasoline inventories drop by 3.6 million barrels. barrels and distillates of 3 million barrels.
Oil prices fell on Tuesday as part of a widespread commodity sell-off as the US dollar surged over fears that rising COVID-19 cases in the US and Asia could potentially lead to a slowdown in the growth.
Reporting by Sonali Paul in Melbourne and Florence Tan in Singapore; Editing by Tom Hogue, Richard Pullin and Kim Coghill
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