Oil returns to decline after recent rises. This morning, the WTI and Brent futures are down by 1% and 0.5% respectively. Tensions in the crude oil market ease after Hurricane Ida was downgraded to category 1 after hitting Louisiana. However, the focus remains on the Gulf of Mexico, where the extent of damage from the passage of the tropical storm and potential production restart times may not be known for several days.
According to the US Bureau of Safety and Environmental Enforcement (BSEE), approximately 96% of Gulf oil production and 15% of the states’ total production have been closed since yesterday. United) due to Hurricane Ida. Also
850,000 barrels per day of Gulf Coast refining capacity is out of order (approximately 45% of US refining capacity is in that area).