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Home / Business / Oil gains through API share redemption, storm in the Gulf of Mexico

Oil gains through API share redemption, storm in the Gulf of Mexico



A Petrobras oil rig floats in the Atlantic Ocean near Guanabara Bay in Rio de Janeiro.

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Oil prices rose more than 2% on Wednesday after industrial data showed that US inventories had fallen more-than-expected US producers evacuated offshore oil rigs in the Gulf of Mexico.

US West Texas Intermediate crude oil futures rose $ 1.37 to $ 59.20 after reaching a session high of $ 59.18.

Brent crude oil futures rose $ 1

.45 to $ 65.61 from a session high of $ 65.47.

American Petroleum Institute (API) data Tuesday's US crude oil inventories slumped 8.1 million barrels a week to 461.4 million barrels by July 5, compared to analysts' expectations for a decline of 3 , 1 million barrels.

Official figures from the government's Energy Information Administration (EIA) will be released Wednesday.

"Prices are currently balanced as investors wait for new momentum," said Fawad Razaqzada, technical analyst at FOREX.com. "The incentive could be a sharp shift in US crude oil inventories."

In the meantime, major oil companies began to clear and cease production in the Gulf of Mexico after weather forecasts threatened that a tropical disruption could later become a storm on Wednesday or Thursday.

Chevron Corp., Royal Dutch Shell, BP and BHP Group Ltd remove employees from 15 offshore energy platforms. According to Exxon Mobil Corp. The malfunction was "closely monitored" to see if their facilities were affected.

In the Gulf of Mexico, 17% of US crude oil production is produced at around 12 million barrels per day (bpd). ,

"Assuming that 1/8 of the storm will lead to evacuation 3/8, a limited short-term impact is expected, but it may be a bit too early to say so," said Paul Horsnell, head of the Raw Materials Research at Standard Chartered

The US and global benchmarks have picked up this year as the Organization of the Petroleum Exporting Countries (OPEC) and large producers such as Russia cut production to bolster prices.

The alliance known as OPEC + approved last week The tensions over the Iranian nuclear program and recent oil tanker incidents have also bolstered prices.

Iranian President Hassan Rouhani said Wednesday Britain will have "consequences" for seizing an Iranian oil tanker off the coast of Gibraltar last week.

Oil prices came under pressure from uncertainty about the outlook for global economic growth due to the impact of the US-China trade war and the recession in oil supply growth.

The EIA has revised its US crude oil production forecast for 2019 to an all-time high of 12.36 million bpd on Tuesday.


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