Oil traded near $60/bbl after a storm shut almost three-quarters of U.S. Gulf of Mexico crude production, at the same time as lingering demand considerations proceed to mark the outlook.
Aftertimes raised 0.2% in New York. About 73% of crude production in the Gulf of Mexico was halted as of Sunday, but some producers are preparing to return employees to offshore platforms as storm Barry weakens after making landfall. The shutdown countered the impact of China’s financial system slowing to a 3-decade low in the second quarter amid a protracted trade dispute with the U.S.
Crude has gained this month due to shrinking U.S. stockpiles and rising tensions in the Middle East. The U.K. and its allies are contemplating beefing up their military presence in the Persian Gulf to deal with the risk to transport posed by Iran. Still, there are issues over the longer-time period outlook for the oil market with OPEC advice of excess in 2020 while the IEA pointed to a shocking rise in global stocks in the first half of this year.
West Texas Intermediate for August delivery added $0.12 to $60.33/bbl on the New York Mercantile Trade. Brent for September settlement was $0.24 higher at $66.96/bbl on the ICE Futures Europe Exchange. The benchmark crude oil traded at a premium of $6.53/bbl to WTI for a similar month.
Exxon Mobil and Chevron are amongst companies returning workers to their offshore platforms and restarting output in the Gulf of Mexico following storm Barry. The region accounts for 16% of whole American crude oil production and beneath 3% of natural gas production, based on the Department of Energy.
The International Energy Agency stated Friday that production cuts by OPEC and its allies failed to stop the return of a surplus in the first half of 2019 as supply exceeded demand at a rate of 900,000 BPD. China’s gross domestic product rose 6.2% in the second quarter from a year earlier, under the 6.4% enlargement in the first quarter.