Oil Markets: Coronavirus, Hurricane Sally
An aerial view of a crude oil storage facility is seen on Might 5, 2020 in Cushing, Oklahoma.
JOHANNES EISELE | AFP through Getty Pictures
Oil costs rose on Wednesday, extending good points from the earlier session, as a hurricane disrupted U.S. offshore oil and fuel manufacturing and an trade report confirmed a giant drop in U.S. crude stockpiles.
Brent crude was buying and selling up 15 cents, or 0.4%, at $40.68 a barrel by 0055 GMT, whereas U.S. crude gained 18 cents, or 0.5%, to $38.46 a barrel. Each contracts rose by greater than 2% on Tuesday.
Greater than 25% of U.S. offshore oil and fuel output was shut and export ports had been closed on Tuesday as Hurricane Sally sat simply off the U.S. Gulf Coast.
“Our present estimate for the overall outage related to the Sally climate system is between three million and 6 million barrels of oil over roughly 11 days,” Rystad Power mentioned in a be aware.
That’s probably to assist scale back stockpiles though refineries had been additionally shut down, slicing demand for oil.
U.S. crude oil inventories…