The arrival of Hurricane Ian in gulf of mexico caused the suspension of the pumping of nearly 19,000 barrels of oil per day, the equivalent of 11% of the total production in the area. This Monday, two of the main operators in the area, BP and Chevronannounced the evacuation of their personnel from offshore platforms.
The next price catalyst will be the producer group meeting OPEC+ on October 5, in which Russia will probably propose a production cut of around 1 million barrels per daysaid a source familiar with the Russian point of view on Tuesday. The European Union announced this Tuesday that it will formalize the request to establish price caps on Russian oil to “reduce Russia’s income, on the one hand, and keep the world energy market stable, on the other hand,” according to the statement. President of the European Commission, Ursula von der Leyen.
Goldman Sachs for its part, cut its oil price forecast on Tuesday for 2023, due to expectations of weaker demand and a stronger dollar, but said global supply disappointments only reinforced his long-term bullish outlook. Chinaone of the great demanders of energy, saw its currency weaken this Tuesday, which touched its lowest level in 14 years.
The dollar strengthening caused there to be a migration towards sovereign bonds and tried to contain the rise in prices due to lower supply. The dollar hit a new high in two decades against six other currencies, as the US rate hike is expected to continue, which also fueled fears of a recession that would reinforce lower energy demand.
The strengthening of the dollar also makes imports from other countries more expensivein particular those of energy, already more expensive since the Russian invasion to Ukrainewhich puts a lot of pressure on Europe that, based on the sanctions imposed on the Eurasian giant, it has to diversify its energy imports.
This Tuesday it will be known how the holdings of crude oil in the United States varied according to the Energy Information Administration.
Source: Ambito
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