Oil Up, Reverses Losses as Signs of Tightness in U.S. Crude Supplies Emerge

© Reuters.

By Gina Lee – Oil was up Tuesday morning in Asia, reversing some losses from the week so far ahead of U.S. crude oil supply data.

were up 0.54% to $74.46 by 11:40 PM ET (3:40 AM GMT) after falling almost 2% on Monday. , which expire later in the day, rose 0.98% to $70.83 after sliding 2.3% during the previous session.

Global utilities are switching to fuel oil due to rising gas and coal prices, and lingering outages from the Gulf of Mexico after Hurricane Ada that imply less supply is available, according to ANZ.

Royal Dutch Shell (LON:) Plc, the biggest oil producer in the U.S. sector of the Gulf of Mexico, said that production from two of its largest fields in the region will not resume until 2022 thanks to the damage wrought by Hurrican Ida in late August 2021.

The disruption in production will impact about 300,000 barrels of daily output capacity, or one out of every six barrels pumped in the region, according to Bloomberg Intelligence.

Markets are now seeking alternative supplies, but a global energy crunch, particularly for , could increase demand for crude oil.

is due later in the day.

In Asia Pacific, the economic recovery in China, the world’s top oil importer, is also on investors’ radars. The will also hand down its latest policy decision on Wednesday and is widely expected to begin asset tapering.

“While slowing Chinese economic growth and uncertainty around the Fed’s tapering timetable weighed on market sentiment, other developments still point to higher oil prices,” ANZ Research analysts said in a note.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.  Learn more