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Oil eases as U.S. production returns after storm

Published 09/18/2020, 09:47 AM
Updated 09/18/2020, 09:50 AM
© Reuters.
EQNR
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LCO
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TOKYO, Sept 18 (Reuters) - Oil prices drifted lower on
Friday, pausing after three days of gains, as producers prepared
to resume operations in the Gulf of Mexico and data showed Saudi
Arabian exports rose from record lows.
Brent crude LCOc1 was down 6 cents at $43.24 a barrel by
0112 GMT, while U.S. oil futures CLc1 dropped 6 cents to
$40.91 a barrel. Both contracts have risen sharply this week as
Hurricane Sally cut U.S. production and are on track for a
weekly gain of around 9%, the first in three weeks.
U.S. offshore drillers and exporters began a clearup on
Thursday after Hurricane Sally weakened to a depression and
started rebooting idle Gulf of Mexico rigs after closing the
down for five days. Crews were flown back to at least 30 offshore oil and gas
platforms. Equinor EQNR.OL and Chevron Corp CVX.N began
returning staff to platforms in the Gulf of Mexico, following
Murphy Oil Corp's MUR.N restart this week.
"Now the storm has passed, we should start to see this
production coming back online," ING Research said in a note.
In Saudi Arabia exports rose in July to 5.73 million barrels
per day (bpd) from a record low the previous month, official
data showed on Thursday. Supporting prices, OPEC and its allies said on Thursday the
group will take action on members that are not complying with
deep output cuts to support the market following a
coronavirus-led slump in fuel demand. The Organization of the Petroleum Exporting Countries (OPEC)
and other producers such as Russia, making up the so-called
OPEC+ group, are cutting 7.7 million barrels a day of output to
support prices.


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