Oil prices fall as the U.S. storm threatens

Crude oil storage tanks will be on display in Cushing, Oklahoma, USA on April 21, 2020 at the Cush Oil Oil Center. REUTERS / Drone Base / File Photo

  • IEA and OPEC will see 100 million BPD oil demand in months
  • U.S. Gulf Coast companies will continue to recover when Nicholas returns
  • The rise in European gas prices also supports oil-analysis

NEW YORK, Sept. 16 (Reuters) – On Thursday, profit margins fell sharply from a week earlier than expected a week ago and the risk of imports to the Gulf of Aden decreased.

Brent crude hit 54 cents or 0.7% per barrel at $ 74.92 at 10:52 AM ET (1452 GMT).

The U.S. West Texas Intermediate (WTI) fell 67 cents or 0.9% to 71.94 after rising to a record high on Wednesday, August 2.

Craig Erlam, a senior market analyst in Oanda, said: “Now that prices are back in the summer, we are seeing some gains, but the rally continues to be well supported.”

US Gulf energy companies were able to quickly restore pipeline services and electricity after Hurricane Nicholas struck Texas earlier this week, allowing them to focus on repairing damage caused by Hurricane Ida weeks ago. Read more

“It is difficult to see how oil prices will rise in the near future,” said Nisant Bush, a Restad energy analyst. “Ida’s oil-damaged capacity continues to recover in the United States”

Oil on Wednesday, U.S. crude resources fell sharply from 6.4 million barrels last week, and offshore oil facilities are still recovering from Hurricane Africa.

Brent has collected 45% this year, backed by a reduction in supplies from the Organization of Petroleum Exporting Countries and its partners, and some recovery from last year’s pandemic.

Oil has also risen sharply due to low gas reserves and factors below Russia’s normal gas supply. Read more

Benchmark European gas prices in the Netherlands have increased by more than 250% since January.

“I think the price increase and the impact on fuel will be much worse before it improves,” he said.

In addition to signs of recovery, recent reports this week suggest that global oil consumption will increase by more than 100 million barrels a day in the second quarter. Read more

Edited by Alex Lauller, Jessica Jagatantan and Roslan in London

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