Oil prices are falling as US supplies return to the market

Oil prices fell yesterday as energy companies in the US Gulf of Mexico region resumed production after two consecutive hurricanes in the region halted production.

Read also- Before starting the study, learn about the conditions for students to join the role of expatriates and expatriates

The CNBC Arabia website stated that there, Brent crude futures fell 33 cents, to reach the settlement price of 75.34 dollars per barrel.

US West Texas Intermediate crude futures fell 64 cents to settle at $71.97 a barrel.

Over the course of the week, Brent rose 3.3% and US crude rose 3.2%, supported by tight supplies caused by the hurricane’s supply disruption.

Today’s decline came after five consecutive sessions of gains for Brent crude.

On Wednesday, Brent hit its highest level since late July, and US crude hit its highest level since early August.

Crude oil exports flowed back from the Gulf Coast again after Hurricanes Nicholas and Ida drained 26 million barrels of offshore production.

And Reuters reported yesterday, Thursday, that the resumption of activities continued, with the suspension of about 28% of US crude production in the Gulf of Mexico.

US energy companies this week added oil and natural gas rigs for the second week in a row, although the number of offshore units in the Gulf of Mexico remained unchanged after Hurricane Ida hit the coast more than two weeks ago.

Energy services company Baker Hughes said 14 offshore platforms in the Gulf of Mexico closed two weeks ago due to the continuing shutdown caused by IDA.

Last week, four offshore platforms returned to service.

Baker Hughes said the number of oil and gas rigs, an early indicator of future production, rose by nine to 512 in the week ending September 17, the highest level since April 2020.


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.