West Texas Crude Oil Soars $1.32

August 28, 2021


West Texas Crude Oil Futures The close Friday (Aug 27) jumped $1.32 amid concerns about tightening oil as several oil companies halt oil production in the Gulf of Mexico. before the hurricane hit this weekend

West Texas Crude Oil Contract Delivered in Oct. Trading on the NYMEX rose $1.32 to close at $68.74 a barrel. Brent crude oil contract Delivered in Oct. It was up $1.63 to close at $72.70 a barrel.

West Texas oil prices are likely to climb more than 8% this week, their biggest jump since February. Meanwhile, Brent crude prices are likely to rise more than 9%, the biggest gain since June 2020. Responding to expectations that China will be able to control the spread of the Covid-19 virus. Delta species

Oil companies have begun evacuating workers from oil rigs in the Gulf of Mexico. by BHB Company and BP announced the suspension of oil production. As Tropical Storm Ida is forming in the Caribbean And is expected to become a hurricane to hit the Gulf of Mexico this weekend.

Oil rigs in the Gulf of Mexico account for 17% of U.S. crude oil production. Meanwhile, refineries along the Gulf of Mexico produce 45% of the U.S. refinery.

Investors are also keeping an eye on the dollar’s rally. Following the remarks made by Federal Reserve Chairman Jerome Powell at the Fed’s annual meeting tonight. If the dollar strengthens It will affect the price of oil. by making oil contracts more expensive for holders of other currencies. But if the dollar depreciates It will be a positive factor for the oil market.


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