Oil hits 6-week high ahead of US inventories data

2021-09-14 13:25:31 GMT (Economies.com)
Oil hits 6-week high ahead of US inventories data

Oil prices continued to rise as the US market opened on Tuesday, rising for the third day in a row, and hit a 6-week high, amid concerns over the return of the US production in the Gulf of Mexico to its normal levels, especially as the new tropical storm Nicolas approaches the region, and ahead of preliminary data on the US crude inventories.

 

US crude rose 0.7% to the highest since August 3 at $71.12 a barrel, after opening at $70.61, and hit a low at $70.53, and Brent crude rose 0.8% to the highest since August 2 at $74.20 a barrel, after opening at $73.62, and hit a low at $73.51.

 

The US crude gained 1.5% yesterday, and Brent crude rose 1.1%, in the second straight gain, due to concerns about US supplies.

 

Producers in the US Gulf of Mexico have again begun evacuating workers from offshore platforms ahead of Tropical Storm Nicholas, which is expected to turn into a hurricane over the next few days.

 

Nearly 40% of production in the Gulf of Mexico remained idle as of today, two weeks after Hurricane Ida swept through the region, bringing strong winds and rains, disrupting about 95% of the region's production.

 

Royal Dutch Shell canceled some export shipments in the Gulf of Mexico on Thursday due to damages to offshore facilities from Hurricane Ida.

 

The Gulf of Mexico encompasses 17% of the US total production, which was 11.5 million bpd before Hurricane Ida, and is currently around 11 million barrels per day.

 

The American Petroleum Institute will release its preliminary report on the US crude inventories later today, and the US Energy Information Administration will release the official data on Wednesday.

 
 
 
  Symbol Last Change Chg.%
1.1734
0.0020
0.1677%
1.3711
0.0035
0.2545%
Tadawul
11270.57
-40.58
0.36%
22.671
0.370
1.659%
73.299
2.366
3.336%
77.59
0.32
0.41%
1754.155
-2.650
0.151%
 
 
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