When Hurricane Ida weakens, OPEC loses oil while focusing

Pumping plant will be drilled in front of a well at sunset on an oil field in Midland, Texas, August 22, 2018. REUTERS / Nick Nick / File Photo

  • Brent is high since August 2, before hitting $ 73.69
  • About 1.7 million people go offline in the Gulf of Mexico
  • OPEC + met Wednesday to discuss a boost

LONDON, August 30 (Reuters) – Oil prices have plummeted for more than four weeks after Hurricane Ida forced a halt in US Gulf oil production, and the focus shifted to the OPEC meeting on Wednesday to discuss further gains.

Within 12 hours of the storm reaching the coast, it was weakened to 1 category. All coastal oil production or 1.74 million barrels per day was blocked before the storm. Read more

Brent’s confidence dropped from $ 73.69 to $ 72.65, or $ 72.35 from 0.5 cents, or from $ 2.2.

“Hurricane Ida will take short-term direction,” said Jeffrey Haley, market analyst at Oanda. “If Ida is weak and the road to disaster is lower than expected, the oil field will temporarily lose power here.

While he was waiting for a rapid supply recovery, the price of American gasoline was about 3%, due to increased oil shortages on the Gulf Coast and traders’ long-term disruption.

“There are still days,” said Vivek Dar, an analyst at Commonwealth Bank of Australia. Prices for petroleum products, such as gasoline and diesel, can rise sharply, especially if there are problems in getting fast filters and pipes online.

Brent has mobilized about 40% this year, the Organization of Petroleum Exporting Countries and OPEC + partners, and some want to recover from last year’s pandemic.

OPEC + met on Wednesday to discuss a 400,000 bpd increase in oil production to further ease last year’s record cuts.

Kuwait’s oil minister said on Sunday that the increase could be reconsidered, although he said the OPEC delegation would continue. Read more

Additional report by Aaron Sheldrick; Edited by

Our Standards – Thomson Reuters Principles.


Leave a Comment