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REFILE-Oil prices extend losses as U.S. producers restore output post-hurricane

Published 10/12/2020, 08:53 AM
Updated 10/12/2020, 11:40 AM
© Reuters.
TTEF
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LCO
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(Refiles to remove reference to hurrican season in 5th
paragraph.)
* Hurricane Delta downgraded by Sunday
* But Colonial Pipeline shut middle distillates supply line
* Norway oil workers end strike on Friday

By Florence Tan
SINGAPORE, Oct 12 (Reuters) - Oil prices dropped for a
second straight session on Monday as U.S. producers began
restoring output after Hurricane Delta weakened, while a strike
that had affected production in Norway came to an end.
Brent crude LCOc1 for December fell 55 cents, or 1.3%, to
$42.30 a barrel by 0023 GMT and U.S. West Texas Intermediate
CLc1 for November was at $40.08 a barrel, down 52 cents, or
1.3%.
Front-month prices for both contracts gained more than 9%
last week, the biggest weekly rise for Brent since June, but
fell on Friday after Norwegian oil firms struck a wage bargain
with labour union officials, resolving a strike that threatened
to cut the country's oil and gas output by close to
25%. "We had good support for both Brent and West Texas on the
back of some supply concerns," said Michael McCarthy, chief
market strategist at CMC Markets in Sydney.
In the United States, Hurricane Delta, which dealt the
greatest blow to U.S. offshore Gulf of Mexico energy production
in 15 years, was downgraded to a post-tropical cyclone by
Sunday.
Workers headed back to production platforms on Sunday while
Total SA TOTF.PA continued restarting its 225,500
barrel-per-day Port Arthur, Texas, refinery on Sunday.
However, Colonial Pipeline, the largest oil products
pipeline in the United States, shut its main distillate fuel
line after the hurricane disrupted power, the company said on
Sunday.

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