Oil prices fell today, Tuesday, on fears that power outages and floods in the US state of Louisiana caused by Hurricane Ida will reduce demand for crude from refineries, while producers intend to Globalists increase production.
US crude contracts fell 41 cents, or 0.6%, to $68.80 a barrel at 2:45 GMT, giving up most of Monday's gains.
As for the global benchmark Brent crude contracts for October delivery, due to expire today, Tuesday, they also fell 46 cents, or 0.6%, to reach $72.95 a barrel. And that after it increased yesterday, Monday, by about 1%.
The most active November contract fell 42 cents, or 0.6%, at $71.81.
Price has faced pressure from the possibility that an extended shutdown of refineries will reduce demand for oil.
Hurricane Ida halted or reduced production at 6 refineries in Louisiana that process 1.92 million barrels per day of crude, or about 12 of US refining capacity.
Hundreds of oil production rigs were evacuated prior to the storm and nearly all US oil production from the Gulf of Mexico, or 1.72 million barrels per day, was halted.
What also limits prices is the possibility that the (OPEC + +) group will agree, tomorrow, Wednesday, to work with a planned increase of 400,000 barrels per day in its oil production, in what will be Another easing of record production cuts it implemented last year.
OPEC delegates say they expect the group to press ahead with production increases, although Kuwait's oil minister said on Sunday that production levels could be restored. Consider it.
