PRICES
Futures in New York rose 2% on Friday to post the biggest weekly gain in more than a year. Oil producers in the U.S. Gulf of Mexico have begun shutting production ahead of Hurricane Ida, which may make landfall in the New Orleans area in the next few days as a Category 3 hurricane.
Meanwhile, Federal Reserve Chair Jerome Powell said the central bank could begin reducing its monthly bond purchases this year, though it won’t be in a hurry to begin raising interest rates thereafter. The central bank had hinted at such asset tapering plans weeks ago.
“Clearly, the hurricane is what the market is focusing on now, at least in the short-term,” said Andrew Lebow, senior partner at Commodity Research Group. “We are going to be losing supply from refiners and some demand.”
Oil has had a volatile August with the fast-spreading delta variant of the virus leading to renewed restrictions on mobility and clouding the outlook for fuel demand. OPEC+ is scheduled to meet next week, and market-watchers surveyed by Bloomberg expect it will ratify another monthly output increase as it revives supplies halted during the pandemic.
- West Texas Intermediate for October delivery rose $1.32 to settle at $68.74 a barrel in New York
- Brent for October settlement gained $1.63 to end the session at $72.70 a barrel
Futures in New York rose 2% on Friday to post the biggest weekly gain in more than a year. Oil producers in the U.S. Gulf of Mexico have begun shutting production ahead of Hurricane Ida, which may make landfall in the New Orleans area in the next few days as a Category 3 hurricane.
Meanwhile, Federal Reserve Chair Jerome Powell said the central bank could begin reducing its monthly bond purchases this year, though it won’t be in a hurry to begin raising interest rates thereafter. The central bank had hinted at such asset tapering plans weeks ago.
“Clearly, the hurricane is what the market is focusing on now, at least in the short-term,” said Andrew Lebow, senior partner at Commodity Research Group. “We are going to be losing supply from refiners and some demand.”
Oil has had a volatile August with the fast-spreading delta variant of the virus leading to renewed restrictions on mobility and clouding the outlook for fuel demand. OPEC+ is scheduled to meet next week, and market-watchers surveyed by Bloomberg expect it will ratify another monthly output increase as it revives supplies halted during the pandemic.
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