Almost 40 percent of daily crude oil production and more than one-third of natural gas output was lost from offshore U.S. Gulf of Mexico wells on Wednesday because of platform evacuations and shut-ins ahead of Hurricane Michael.
The group's daily production rose by 132,000 barrels in September to 32.76 million. As trade tensions between the US and China escalate, investors are shunning risk assets from equities to oil on fears over slowing growth.
Torbjorn Tornqvist, CEO of Gunvor, and Weir disagreed with Taylor's price outlook, stating that crude futures could reach $100 or higher either by year end or next year; meanwhile, Alex Beard, chief executive for oil and gas at Glencore, predicted oil would reach $85-$90 per barrel.
The cuts represent 718,877 barrels per day (bpd) of oil production. Crude futures at times track with equity markets. They earlier touched their lowest since September 27 at $81.35, after closing 2.2 percent lower on Wednesday. As supply conditions continue to tighten, crude oil prices are rallying as a result.
The country's largest privately owned crude terminal, the Louisiana Offshore Oil Port LLC, said on Tuesday it had halted operations at its marine terminal.
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Of the 220.4 million metric tonnes (million MT) of crude oil imported by India in 2017-18, about 9.4 percent, was from Iran.
US West Texas Intermediate (WTI) crude futures were up 26 cents, or 0.4 per cent, at $71.23 a barrel, after falling 3 per cent in the previous session to the lowest since September 21. As mentioned in yesterday's daily update, October exports have fallen to around 1M barrels a day (from a peak of 2.5M earlier this year) according to tanker and industry sources.
Reuters however reports that markets were supported as Hurricane Michael closed almost 40 percent of U.S. Gulf of Mexico oil output and U.S. sanctions restricted Iranian exports. Moreover, presently, the Indian federal government is struggling with higher oil prices and a weakening Rupee (domestic currency) against the US currency that also weighs on its oil import bill.
The monthly report of the Organization of the Petroleum Exporting Countries (OPEC) said in its latest report that the world oil demand growth is to decline to 1.36 million barrels a day in 2019 from 1.54 million barrels a day this year, Xinhua reported.
The U.S. Energy Information Administration (EIA) on Thursday reported rises in both crude oil and gasoline inventories.