Oil prices rose on Wednesday,paring overnight losses, with producers in the U.S. Gulf of Mexico struggling to restart operations nine days after Hurricane Ida swept through.
U.S. West Texas Intermediate (WTI) crude futures rose 27 cents, or 0.4 per cent, to $68.62 a barrel at 0204 GMT, after sliding 1.4 per cent on Tuesday following the Labour Day holiday.
Brent crude futures inched up 14 cents, or 0.2 per cent, to $71.83 a barrel, after falling 0.7 per cent on Tuesday.
"The market is ... weighing up the impact of ongoing delays to the resumption of operations in the Gulf of Mexico," ANZ Research analysts said in a note.
About 79 per cent of U.S. Gulf production remained offline on Tuesday, with 79 production platforms still unoccupied more than a week after Hurricane Ida made landfall. About 17.5 million barrels of oil has been lost to the market so far.
The Gulf's offshore wells make up about 17 per cent of U.S. output.
Traders will be closely watching inventory data from the American Petroleum Institute industry group due on Wednesday and the U.S. Energy Information Administration on Thursday for a clearer picture of the storm's impact on crude production and refinery output.
Analysts polled by Reuters expect, on average, that crude stocks dropped by 3.8 million barrels in the week to Sept. 3,and see gasoline stocks down by 3.6 million barrels and distillates down by 3 million barrels.
Oil prices fell on Tuesday in a widespread commodity sell-off as the U.S. dollar jumped on worries about rising Covid-19 cases in the United States and Asia potentially slowing growth.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.