Oil Prices Fall As Storm-Hit US Supply Returns To Market

By Stephanie Kelly

NEW YORK (Reuters) –fell on Friday like Companies in the US Gulf of Mexico restarted production after consecutive hurricanes in the region shut down production.

futures fell 33 cents to settle at $ 75.34 a barrel. US West Texas Intermediate (WTI) crude futures fell 64 cents to settle at $ 71.97 a barrel. During the week, Brent rose 3.3% and US crude 3.2%, supported by tight supplies due to hurricane outages.

Friday’s slide followed five consecutive sessions of gains for Brent. On Wednesday, Brent reached its highest level since the end of July and US crude reached its highest level since the beginning of August.

“The reason reached such high levels in recent days it was clearly supply disruptions and inventory reductions, so now that US oil production is coming back, oil as expected is trading lower, “said Nishant. Bhushan, Rystad Energy’s oil company. analyst.

Crude oil exports from the Gulf Coast are flowing again after Hurricanes Nicholas and Ida took 26 million barrels of production offshore. Restarts continued with about 28% of Gulf of Mexico crude production offline, Reuters reported Thursday.

U.S This week, the companies added oil and natural gas rigs for the second week in a row, although the number of offshore units in the Gulf of Mexico was unchanged after Hurricane Ida hit the coast more than two weeks ago.

Fourteen offshore platforms in the Gulf of Mexico closed two weeks ago due to Ida being closed, said services firm Baker Hughes Co. Last week, four offshore rigs were back in service.

The oil and gas rig count, an early indicator of future production, rose from nine to 512 in the week through Sept. 17, its highest level since April 2020, Baker Hughes said.

The dollar rose to a multi-week high on Friday, making dollar-denominated crude more expensive for those using other currencies. The dollar received a boost thanks to better-than-expected US retail sales data on Thursday.

US consumer confidence stabilized in early September after falling the previous month to its lowest level in nearly a decade, but consumers remain concerned about inflation, a survey showed on Friday.

(Reporting by Stephanie Kelly in New York; additional reporting by Julia Payne in London, Sonali Paul in Melbourne, and Roslan Khasawneh in Singapore; edited by David Goodman, Louise Heavens, and David Gregorio)

(Business Standard staff may have only modified the title and image of this report; the rest of the content is automatically generated from a syndicated feed.)

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