Hurricane-hit energy companies resumed production

By: Miguel A. Rodriguez

14:55, 20 September 2021

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After a weather-induced price surge, oil ends the week lower

Energy companies from the Gulf of Mexico resumed production after hurricanes in the region shut output. Gulf Cost oil exports are flowing again after hurricanes Nicholas and Ida took out 26 million barrels of offshore production. The activity was restarted with about 28% of the Golf’s crude output offline.

Brent oil fell 33 cents, settling at $75.34 a barrel. Crude oil lost 64 cents, reaching $71.97 per barrel. The benchmarks ended the week 3.3% higher and 3.2%, respectively. The increase was possible due to tight supplies caused by the hurricane outages.

Friday’s decrease followed five straight sessions of rises. On Wednesday, both benchmarks reached highs unseen since late July and early August.

At the same time, the US Dollar jumped to a multi-week on Friday. Moreover, it got a kick-start from the better-than-expected US retails sales data published on Thursday.

The oil prices fall continued this Monday, September 20, extending last week’s losses. Brent crude fell 0.8% to $74.73 a barrel, while crude oil reached $71.31 a barrel, marking a 0.9% decline.

 

Source: reuters.com

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