Oil fell as US production resumed

Oil fell as US production resumed

September 13, 2024 – 16:41

The North American country is recovering from Hurricane Francine and the number of platforms is increasing, dragging down the price of crude oil.

Photo: Freepik

The prices of the oil fell on Friday as U.S. crude production in the Gulf of Mexico resumed after the interruptions caused by the Hurricane Francinewhile the number of platforms in the country increased this week.

The Brent futures lost 26 cents, or 0.3%, to $71.71 a barrel and U.S. crude oil prices West Texas Intermediate (WTI) fell 31 cents, or 0.3 percent, to $68.66. Both benchmarks were up more than $1 a barrel at the start of the session.

As production and refining activity resumes, United States Gulf Coast, Investors have opted to dump oil contracts ahead of the weekend, he said. Bob Yawger, director of energy futures at Mizuho in New York.

“We could come back on Monday and everything would be fine: refineries would be running at 100%, everyone would be back on the rig, oil would be coming back and gasoline would be coming out of the refinery, and the market could potentially go back exponentially,” Yawger said.

Official data showed that by Thursday the storm had nearly shut down 42% of the oil production in the region, which accounts for about 15% of US production.

“These cuts are expected to be short-lived and, in a broader context, are unlikely to cause much movement in crude oil balances, given the importance of shale production, which accounts for the majority of U.S. output,” Ritterbusch said.

Source: Ambito

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