After traders turned their attention to a narrow supply chain, the future of the West Texas Middle and International-Brent crude oil industry was bleak. Rising supply shortages caused by Hurricane Ida in the United States are more than offset by the depressive effects of Saudi Arabia’s declining prices on Asia and China’s oil reserves.
On Friday, December, WTI crude rose $ 69.13, $ 1.52, or + 2.25%, and December Brent crude rose $ 72.26, $ 1.47, or 2.03%.
The oil market has also been boosted by calls from US President Joe Biden and his Chinese counterpart Xi Jinping. Reuters reports that the call has raised hopes for warmer relations and international trade.
In other news, the United States has seen an increase in X-rays in the last week, with energy provider Baker Hughes saying production could increase in the coming weeks.
More than two-thirds of coastal oil production has been shut down in the U.S. Gulf — regulator
U.S. offshore oil companies returned production to 200,000 barrels on Friday, with most of the Gulf’s mill production going offline following Hurricane Ida, according to government sources.
The hurricane struck the US Gulf of Mexico two weeks ago, damaging infrastructure and removing more than 21 million barrels of produce, Reuters reported.
More than two-thirds or 1.2 million barrels of oil from the Gulf of Mexico in the United States are still undergoing maintenance, helping to support global oil prices.
U.S. Gulf Coast Filters are recovering faster than manufacturers
About two weeks after the hurricane, most of the nine Louisiana filters that were shut down by Idaho resumed or resumed.
Filters are recovering rapidly from oil production, in contrast to previous storm recovery. Of the nine oil refineries, only three have lost their jobs, accounting for about 7% of the Gulf’s refinery production, which accounts for about two-thirds.
The U.S. Coast Guard is starting to return after Ida – Baker Hughes
U.S. energy companies have added oil and natural gas for the fifth time in six weeks this week, as oil units on the Gulf of Mexico are slowly recovering.
Energy services company Baker Hughes Co. said in a recent report that four beaches in Louisiana have returned this week.
Last week, all overseas operations in the Gulf of Mexico were closed due to Ida. They all needed oil and were near Louisiana.
Short view
Friday’s booming traders are worried about the pace of recovery in the Gulf of Mexico. This concern may continue until next week. As long as the weather improves, conditions could improve quickly next week, but we are at a high point during any hurricane.