Oil falling amid elimination of problems with production in Gulf of Mexico

Global oil prices are declining on September 20 morning after the gradual elimination of oil production problems in the Gulf of Mexico following Hurricane Ida, according to trading data and analysts’ comments, Report informs.

As of 09:09 (GMT+4), the price of November futures for Brent crude oil fell by 0.76%, to $74.77 per barrel, October futures for WTI fell by 0.88%, to $71.17 per barrel.

Oil prices extended their declines in Asia on September20 morning, as crude production in the Gulf of Mexico makes a slow comeback from Hurricanes Ida and Nicholas.

“We see a production loss of about 850,000 bpd for the third week of September, then going down to 180,000-200,000 bpd in the fourth week,” Rystad Energy said.

The easing of supply disruptions comes amid COVID-19 outbreaks in crude importers China and Japan, which are likely to hamper the oil demand recovery, Rystad Energy said.