After hitting a 6-week high above $71 a barrel on Tuesday, WTI crude futures curbed gains to trade around $70 a barrel and ending a two-day rally.
This is as the Brent crude futures steadied above $73 a barrel on Tuesday, after rising to a more than 6-week high of $73.9 a barrel, amid concerns about tight supply in the US during hurricane season, with onshore oil refiners reportedly beginning to prepare for Tropical Storm Nicholas in Texas this week. Meantime, more than 40 per cent of the US Gulf’s oil and gas output remaining offline Monday.
In its latest monthly report, OPEC lowered its oil demand forecast by 110,000 bpd to an average 99.70 million bpd in Q4 2021 due to the delta strain. The IEA also lowered its 2021 global oil demand growth forecast by 105,000 bpd to 5.2 million bpd, but raised its 2022 figure by 85,000 bpd to 3.2 million bpd
Investors balance worries over slowing demand recovery due to Covid-19 and signs of further supply disruptions as another storm could affect output in Texas this week. Hurricane Nicholas made landfall early Tuesday over the Gulf Coast of Texas, around 3 weeks after hurricane Ida hit the US Gulf of Mexico. More than 40% of the US Gulf’s oil and gas output remaining offline Monday as producers struggle to return production. Meanwhile, OPEC cut its oil demand forecast to an average of 99.70 million bpd in Q4, due to the Delta variant, but raised its outlook for 2022. Oil demand is seen rising by 4.15 million bpd next year.
also lowered its 2021 global oil demand growth forecast by 105,000 bpd to 5.2 million bpd, but raised its 2022 figure by 85,000 bpd to 3.2 million bpd.