Oil prices continue to rise after Hurricane Ida and due to fears of Tropical Storm Nicholas, as oil prices today reached their highest level in 6 weeks.
reached oil prices, Today, Tuesday, its highest levels in 6 weeks, on fears that another storm could affect production in Texas this week, even as the US crude industry struggles to return to normal production levels, after Hurricane Ida damaged the Gulf Coast. .
Crude prices rose for the third consecutive session, while Brent crude reached its highest level since August 3, earlier in the session.
Brent crude rose 40 cents, or 0.5 percent, to $ 73.91 a barrel by 04:44 GMT, after rising to the high level of $ 74.08 earlier.
US West Texas Intermediate crude also rose 45 cents, or 0.6 percent, to $70.90 a barrel, after rising to $71.05 a barrel, its highest level since August 3.
Brent gained 0.8 percent, while WTI gained 1.1 percent on Monday.
And she was Oil prices fell Last Tuesday, amid expectations of reduced demand, after Hurricane Ida closed refineries on the US Gulf Coast.
Evacuations took place yesterday from offshore oil platforms in the Gulf of Mexico, as onshore oil refineries began to prepare. Tropical Storm Nicholas, which is heading toward the Texas coast at wind speeds of 70 miles per hour (113 kilometers per hour), threatening the states of Texas and Louisiana, which are still recovering from Hurricane Ida.
“Investors are concerned that Nicholas could cause another disruption to the Gulf Coast as they seek to estimate how long crude production will remain affected by Hurricane Ida,” said Satoru Yoshida, commodities analyst at Rakuten Securities.
More than 40 percent of oil and gas production in the US Gulf Coast has been shut down since Monday, two weeks after Hurricane Ida lashed the coast of Louisiana, according to the sector’s Bureau of Safety and Environmental Enforcement.
The price gains also came in light of fears of disruption to oil production in Libya.
The “National Oil Corporation” in Libya said that “loading operations at the Libyan oil ports of Sidra and Ras Lanuf resumed on Friday after a one-day hiatus,” but an engineer at the Hariga port said that “the port is still closed due to protesters.”
On the other hand, Hiroyuki Kikukawa, general manager of research at Nissan Securities, predicted that “the rise in the price of oil will be short-lived.”
“The market rally may be limited as the US summer driving season weakens, while there is a possibility of supply increases from planned oil withdrawals from strategic reserves in the United States and China, as well as a possible resumption of Iranian crude exports,” Kikukawa said.
This, and the US government agreed to sell crude oil from the national emergency reserve to 8 companies, including “ExxonMobil” and “Chevron”, under a scheduled tender to raise money to finance the federal budget.
Traders indicated that China’s planned withdrawal of strategic petroleum reserves may enhance the available supplies in the world’s second largest consumer of crude.
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