After falling during the session, oil prices rose during trading on Monday, returning to the highest level in four weeks in the most turbulent session since Hurricane Ida weakened after forcing authorities to halt precautionary oil production in the United States. OPEC may turn its attention to the Gulf and tomorrow, Wednesday, to discuss further product development.
Twelve hours after it crossed the coast, the strength of the storm turned into a kind of storm. Almost all marine oil production in the Gulf of Mexico was halted in anticipation of a storm equivalent to 1.74 million barrels a day. Brent crude was up 0.33 percent at $ 71.89 a barrel at 1533 GMT, the highest level since August 2, after reaching $ 73.69 during the session. U.S. crude was up 0.3 percent at $ 68.88 a barrel, the highest level since August 6 after touching $ 69.64.
“Ida will set the direction for hurricane oil very close,” said Jeffrey Haley, Oyanda’s senior market analyst. Its speed is here. “
Despite the fall in crude oil prices in anticipation of a quick recovery in supply, petrol in the United States rose nearly three percent due to a power outage to shut down refineries along the Gulf Coast, and traders considered the possibility of a lasting blackout.
“These are just the early days … Oil products such as petrol and diesel are likely to go up sharply as the refinery is shut down, especially if there are difficulties in refining the refineries and pipelines,” Vivek Thar said. A commodity analyst at Commonwealth Bank Australia.
Brent has risen nearly 40 percent since the beginning of this year, supported by supply cuts implemented by the Organization of the Petroleum Exporting Countries (OPEC) and its allies in the group called OPEC +, and some demand to recover from the slump caused by the epidemic last year.
OPEC Plus is likely on Wednesday to discuss a planned increase in its oil production to 400,000 barrels per day.
Reuters, citing three sources in the OPEC, said the group would keep its oil production policy unchanged when it meets tomorrow and will continue with a moderate planned increase in production.
But OPEC Plus circles say the recent oil price hike is temporary, and is mainly driven by supply disruptions in Mexico and a strong storm hitting the U.S. Gulf Coast. One source said: “The current oil price is around $ 70.” OPEC Plus is likely to continue as planned, with an increase of 400,000 barrels per day.
Kuwaiti Oil Minister Mohammed al-Faris said on Sunday that, according to Reuters, OPEC + will discuss whether to continue the planned increase this week, whether to reconsider or halt the increase, and that the economies of East Asian countries and China are still affected by the Govt-19, and they should be careful. He later told the Kuwait News Agency (GUNA) that Kuwait would support any decision taken by the OPEC + ministers by consensus.