Oil holds as Hurricane Ida weakens and OPEC + is focused

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A pump dam operates in front of a drilling rig at sunset at an oil field in Midland, Texas, USA on August 22, 2018. REUTERS / Nick Oxford / File Photo

  • Brent hit $ 73.69, the highest since Aug. 2, before declining
  • About 1.7 million bpd of the Gulf of Mexico are produced offline
  • OPEC + is moving forward with an increase in production at the Weds meeting

LONDON, Aug 30 (Reuters) – Oil stabilized on Monday and dropped most of its previous concentration to a four-week high as Hurricane Ida weakened after forcing production shutdowns US Gulf oil and OPEC + seemed to be moving forward with a planned plan. increase in oil production.

Within 12 hours of reaching land, the storm had weakened into a Category 1 hurricane. Nearly all of the Gulf’s offshore oil production, or 1.74 million barrels per day, was suspended before storm. Read more

Brent crude rose 11 cents, or 0.2%, to $ 72.81 at 1135 GMT, after hitting $ 73.69 earlier, the highest since Aug. 2. 6.

“Hurricane Ida will dictate the short-term direction of oil,” said Jeffrey Halley, senior market analyst at OANDA. “If Ida weakens and its path of destruction is shorter than expected, the concentration of oil will temporarily lose momentum here.”

Although crude oil fell in anticipation of a rapid recovery in supply, U.S. gasoline rose nearly 2% as power outages were added to refinery closures on the Gulf Coast and traders they weighed the possibility of prolonged disturbances.

“These are still early days,” said Vivek Dhar, an analyst at the Commonwealth Bank of Australia. “Petroleum products, such as gasoline and diesel, are likely to see prices rise more sharply due to refinery shutdowns, especially if there are difficulties in getting refineries and pipelines back online.”

Brent has met 40% this year, backed by supply cuts from the Organization of the Petroleum and Allied Exporting Countries, known as OPEC +, and some are demanding a recovery from the collapse caused by the pandemic. from last year.

OPEC + meets on Wednesday to discuss a projected increase of 400,000 bpd in its oil production, which would mean a further reduction in record production cuts produced last year.

OPEC delegates say they expect the increase to continue, although Kuwaiti oil minister said Sunday it could be reconsidered. Read more

Additional reports by Aaron Sheldrick; Edited by David Evans

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