O Oil traded with strong gains in Wednesday’s session (28), with Hurricane Ian and the likelihood of production cuts by OPEC+ dictating supply constraints.
At 5 pm, WTI (American benchmark) and Brent (international benchmark) futures were up 4.37% and 3.48%, respectively.
Hurricane Ian and falling inventories support WTI recovery
Most of the macroeconomic oil news was focused on the United States, which monitors Hurricane Ian’s passage off the coast of Florida. The extratropical storm disrupted natural gas production in the Gulf of Mexico, as well as having devastating effects on infrastructure as it passed through the Caribbean Sea.
Additionally, investors reflect the week’s drop in stocks of Petroleum and fuels from USA, in proportion to the increase in demand for fuel and reduction in refinery production, informed the Energy Information Administration (IEA) this Wednesday.
Moscow ‘lobby’ for more OPEC intervention
Still from a supply point of view, Russian lobbyists are pressing OPEC member countries to convince countries to cut oil production by up to 1 million barrels a day in October. The intention is to protect oil prices from the downtrend currently ruling the markets, worried about the prospects of a recession in the short term.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
