Oil levels out unchanged as recent storm spares US energy sector

An oil storage tank and crude oil pipeline equipment is seen during a tour of the Department of Energy at Strategic Petroleum Reserve in Freeport, Texas, the United States, June 9, 2016. REUTERS / Richard Carson

  • The US CPI rose 0.5% yoy and 0.3% yoy
  • The IEA sees a 1.6 million bpd recovery in oil demand in October
  • China is auctioning 7.38 million barrels of crude oil from strategic reserves

September 14 (Reuters) – Oil prices ended broadly unchanged on Tuesday as Tropical Storm Nicholas brought heavy rains and power outages to Texas, but did less damage to US energy infrastructure than Hurricane Ida earlier this month.

Brent crude rose 9 cents to $ 73.60 a barrel after hitting a session high of $ 74.28. US crude West Texas Intermediate (WTI) rose 1 cent to $ 70.46 after hitting a high of $ 71.22.

More than 39% of crude and natural gas production in the U.S. Gulf of Mexico remained closed on Tuesday, the regulator Bureau of Safety and Environmental Enforcement (BSEE) said. Nicholas landed in Texas on Monday and was due to reach Louisiana on Wednesday, bringing further flooding and heavy rains to the Gulf’s oil facilities.

“The situation in the Gulf is not going to resolve itself quickly,” said John Kilduff, partner at Again Capital LLC in New York.

Royal Dutch Shell (RDSa.L) has stopped production on an offshore oil platform due to strong winds. At some energy hubs, shipping was stopped due to difficult weather conditions.

“There will be import-export problems because Houston is in a semi-flood zone,” said Bob Yawger, director of energy futures at Mizuho.

Nicholas is the second major storm to threaten the US Gulf region in recent weeks, bringing heavy rains to the deep south and causing power outages. Still, most of the Texas refineries were operating normally, and the Texas utilities were restoring power for customers affected by outages. Continue reading

The Colonial Pipeline, the largest U.S. fuel pipeline, was partially reopened after being closed due to an early day power outage.

Oil turned negative during session after new data from the US Department of Labor showed inflation cooling and worries about the storm’s impact on the energy sector eased. Continue reading

After three months of declining global oil demand, the introductions of COVID-19 vaccines are likely to revive the appetite for oil suppressed by pandemic restrictions, particularly in Asia, the International Energy Agency (IEA) said Tuesday.

The IEA sees demand recover by 1.6 million barrels per day (bpd) in October and continued growth through the end of the year.

Overall, the agency lowered its forecast for global oil demand growth in 2021 by 105,000 bpd to 5.2 million bpd, but increased its 2022 figure by 85,000 bpd to 3.2 million bpd.

These forecasts are below those of the Organization of Petroleum Exporting Countries (OPEC), which expects demand to grow by around 5.96 million bpd this year and 4.15 million bpd next year. Continue reading

Reuters graphic

Protesters blocked the loading of an oil tanker at the Libyan terminal in Es Sider on Tuesday, the National Oil Corp (NOC) media office and an engineer in the port said.

Details of China’s plans to sell crude oil from strategic reserves pushed prices down. China’s state reserve administration announced that it would auction around 7.4 million barrels of crude oil on September 24th.

Additional reporting by Ahmad Ghaddar in London, Yuka Obayashi in Tokyo Editing by Paul Simao, Mark Potter and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

About Christine Geisler

Check Also

US oil production will rise again despite the reluctance of major shale drills

US oil production is set to pick up speed again – this time led by …

Leave a Reply

Your email address will not be published. Required fields are marked *