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Oil gains for 2nd session as lower U.S. output supports

09 September 2021 08:26 (UTC +04:00)

Oil prices rose for a second session on Thursday, recovering from earlier losses as a decline in U.S. Gulf of Mexico output following damages from Hurricane Ida underpinned the market, APA reports quoting Reuters.

Brent added 23 cents, or 0.32% to $72.83 a barrel at 0221 GMT and West Texas Intermediate (WTI) crude rose 15 cents, or 0.22%, to $69.45 a barrel.

"U.S. production is struggling to recover from Hurricane Ida," ANZ said in a note. "Extensive damage to infrastructure and power outages mean Ida has knocked off more supply after nine days than any other storm."

About 77% of U.S. Gulf production remained offline on Tuesday, or about 1.4 million barrels per day (bpd). The market has lost about 17.5 million barrels of oil so far. read more

The Gulf's offshore wells make up about 17% of U.S. output.

U.S. crude oil production is expected to fall by 200,000 barrels per day in 2021 to 11.08 million bpd, the U.S. Energy Information Administration (EIA) said on Wednesday, noting that Hurricane Ida should force a bigger decline than its previous forecast for a drop of 160,000 bpd.