Original title: us Oil turned to the pressure 69 mark, this week OPEC+ is expected to decide to continue the production reduction policy.
Source: Huitong Network
U.S. crude oil futures fell from a more than three-week high of $69.64 in Asia on Monday, despite the short-term damage caused by a dangerous Category 4 hurricane in the Gulf of Mexico and a weaker dollar. but renewed concerns about fuel demand have weighed on oil prices amid rising cases of novel coronavirus infection.
As of press time, US crude oil futures traded at 68.43 US dollars per barrel, down 0.45%, while Brent crude oil futures traded at 71.71 US dollars per barrel, up 0.01 per cent. Us crude oil futures surged about 11 per cent last week, the biggest weekly increase since June 2020.
"this is nothing new, but each hurricane is different, creating uncertainty in the region, which has a big impact on US production," said Craig Erlam, a senior market analyst at OANDA. If it is causing heavy losses, oil prices are likely to continue to give up the gains recorded in Asia.
The National Hurricane Center says Tropical Storm Nora has disappeared, but torrential rains and remaining water will continue to spread north and northwest in the coming days, a final warning. Hurricane Ida is expected to weaken further rapidly in the next day or so and will become a tropical storm later this morning. Hurricane Ida will cause dangerous storm surges, destructive winds and mountain torrents. U.S. president Joe Biden has declared a major disaster in Louisiana and ordered federal aid to complement recovery efforts in areas affected by Hurricane IDA.
As of Saturday, 91 per cent of crude oil production (equivalent to about 1.65 million barrels per day) and 85 per cent of natural gas production had been shut down, according to Safety and Environmental Enforcement. At refineries along the Mississippi River, about 1.9 million b / d of refining capacity, equivalent to 10 per cent of the US total, has been closed or reduced.
Oil companies that have shut down oil and gas production include: BP P.L.C., Shell, Statoil, BHP Group LtdMurphy Oil、 Chevron Corp、 Exxon Mobil Corp. On the port side, the United States Coast Guard imposed traffic restrictions on the New Orleans area, and LOOP suspended deliveries until the impact of the hurricane subsided. Companies that have stopped or reduced production in refining and chemical plants include: Phillips 66, PBF, Shell, Marathon, Valero, and Exxon Mobil Corp.
Those who are unable or unwilling to evacuate will have to be prepared for the toughest test to date. After Hurricane Katrina hit more than a decade ago, the U. S. government spent billions of dollars upgrading dikes near New Orleans. Entergy of Louisiana said the whole of New Orleans lost power after a "catastrophic transmission disruption."
Before Ida landed, Louisiana Governor Edwards Lifesciences Corp told reporters at a news conference that it was one of the strongest storms to land here in modern times. Edwards Lifesciences Corp said Hurricane Ida was one of the strongest storms ever to hit Louisiana. The state has pre-deployed search and rescue teams, ships and other resources to help local institutions and people in the state in a safe manner. But a major disaster statement from the president is still needed to provide more assistance so that Louisiana can better deal with the crisis and protect the health and safety of its people.
Preliminary data from the Chicago Mercantile Exchange Group crude oil futures market showed that traders increased their open positions in crude oil by about 5100 on Friday, the third day in a row. On the contrary, trading volume fell for the second day in a row, this time by nearly 3700 contracts.