Oil in New York is headed for the biggest monthly loss since October as investors weighed the prospect of additional OPEC+ production and the restoration of crude output in the U.S. after Hurricane Ida.
West Texas Intermediate fell as much as 1.5% in New York and has declined about 7% this month. Gulf of Mexico crude producers are expected to resume service gradually after Ida crashed ashore in Louisiana over the weekend. Refineries are expected to return to operations more slowly.
There’s optimism that the industry will bounce back sooner than later, which is causing crude prices to weaken, said Robert Yawger, director of the futures division at Mizuho Securities.
“I’m looking for oil production coming back in a week and refineries coming back in two weeks,” he said.
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