It was a weak August in terms of oil prices. September starts with increases. Investors are counting down the hours to the start of the OPEC + meeting, which is to be followed by another increase in raw material production, brokers report.
A barrel of West Texas Intermediate crude oil in October deliveries on the NYMEX fuel exchange in New York costs $ 69.01, up 0.74 percent. In August, the raw material lost over 7 percent on NYMEX in New York. It was the strongest monthly decline in US oil prices this year.
Brent crude oil in deliveries for November on the ICE Futures Europe fuel exchange in London costs USD 72.12 per barrel, up 0.68 percent.
Oil price – fourth pandemic wave on the horizon
On Wednesday, OPEC countries and its allies, including Russia, will assess the situation in global fuel markets, including the outlook for demand as the next wave of COVID-19 unfolds.
Experts expect the cartel and other oil suppliers to ratify the restoration of more oil production to the markets – by 400,000 tonnes. barrels per day in October, assuming the market can absorb extra barrels as fuel demand recovers more strongly from the COVID-19 pandemic.
Meanwhile, US oil stocks are falling; The American Fuel Institute (API) said in an industry report that crude oil inventories fell by 4.045mn barrels last week.
Gasoline inventories increased by 2.711 million barrels, and distilled fuel inventories fell by 1.961 million barrels, according to an API report.
The Department of Energy (DoE) will give official calculations on Wednesday in its weekly report.
Crude oil and the “hurricane season”
“The oil market is likely to remain volatile – the OPEC + meeting is approaching, and we also have hurricane season,” said Howie Lee, economist at Oversea-Chinese Banking Corp.
“For now, benchmark Brent prices are expected to fluctuate in the range of $ 70-75 per barrel, but short-term volatility means that Brent may temporarily break these levels at both ends of the range in the next week or two,” he adds.
Meanwhile, the United States began restoring oil supplies and refining oil in the Gulf of Mexico and Louisiana following the recent heavy impact of Hurricane Ida.
Ida hit the Gulf Coast exactly 16 years after Hurricane Katrina hit it.
On Sunday, the hurricane was rolling with a wind speed of about 150 miles per hour.
Ida was ranked fifth among the worst hurricanes ever to hit the continental US.
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