Crude oil prices hit their one-week highs on Monday amid a supply concern arising from damages from Hurricane Ida on offshore platforms in the US Gulf of Mexico. The international benchmark Brent increased by 48 cents (0.7%) to $73.40 per barrel, while US WTI crude also rose by 49 cents (0.7%) to $70.21 per barrel. The two futures climbed to their highest levels since September 3 earlier in the session.
US regulators said about three-quarters, or 1.4 million bpd of offshore oil production in the US Gulf of Mexico, remained offline on Sunday. Adding support to prices, more Louisiana refining plants have resumed production, boosting demand for crude oil. Industry sources expect US Gulf’s offshore oil production to rise in the coming weeks.
Beyond the impact from Ida, market participants would also focus on potential adjustments to the global oil demand projections for 2022 by the IEA and OPEC. OPEC is expected to cut its expectations on the world’s oil consumption for next year, Reuters reported, citing two people familiar with the matter.
