Oil prices are rising due to the suspension of production, falling stocks

Oil prices are rising due to the suspension of production, falling stocks

TOKYO (Reuters) – Oil prices rose for the second day in a row on Wednesday, as US oil production halted due to the hurricane and the release of a report showing declining oil inventories.

Futures for Brent crude rose 1.43% to $ 41.11 a barrel by 09:00 Moscow time, while WTI added 1.75% to $ 38.95 a barrel.

More than 25% of oil and gas production in the United States was stopped, and oil terminals were closed on Tuesday due to the hurricane “Sally”, which approached the coast of the Gulf of Mexico.

“Our current estimate for the total loss of production associated with Sally is between 3 and 6 million barrels of oil in about 11 days,” Rystad Energy said in a memo.

US oil inventories fell sharply last week, data from the American Petroleum Institute (API) showed on Tuesday. [API / S]

According to the API, oil inventories fell 9.5 million barrels to 494.6 million in the week ending September 11, while analysts expected them to rise by 1.3 million barrels.

The International Energy Agency (IEA) on Tuesday lowered its forecast for oil demand in 2020, citing caution about the pace of economic recovery from the coronavirus pandemic.

Meanwhile, the Organization of the Petroleum Exporting Countries said it expects a sharper drop in global oil demand than previously predicted.

(Aaron Sheldrick; Translated by Caleb Davis. Editor Anna Kozlova)

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