On Tuesday, crude oil prices were mixed on the back of the significant oil production cuts caused by the double storms in the US Gulf Coast and the resurging coronavirus cases in Asia and Europe.
At 04.19 GMT, Brent crude oil futures rose by 0.2% or 9 cents to USD45.22/barrel while the US WTI lost 0.2% or 9 cents to USD42.53/barrel.
The US oil market was actually feeling the negative impact of the jump in rig count last week along with the mixed data of the coronavirus infections, but it was muted by the disruption caused by the Tropical Storms Marco and Laura in the US Gulf Coast region, according to analyst Stephen Innes of AxiCorp.
The storms prompted energy firms in the region to slash production with the shutdown of 82% of the area’s offshore crude oil output. Close to 14% of the US total output from the Gulf Coast offshore oil production has been shut.
Looking ahead, progress is seen on the resolving issues over the Phase 1 China-US trade deal as the US Trade Representative’s Office said that both sides are committed to the success of the agreement.
A preliminary Reuters poll expected that last week, the US crude oil inventories to fall for a fifth consecutive week, along with refined products.
