A stronger dollar and uncertainty surrounding the impact of hurricane Irma put some downward pressure on oil prices, although with some reluctance to trade aggressively given the high degree of uncertainty and OPEC rhetoric provided net support.
The market "will be paying greater attention than usual" to the inventory numbers, which will give "the clearest picture to date of the fundamental impact to the oil market from Hurricane Harvey", said Robbie Fraser, commodity analyst at Schneider Electric, in a note. The storm hit just over two weeks after Hurricane Harvey hobbled the U.S. Gulf Coast refining sector, knocking almost a quarter of its capacity offline.
Oil prices are a little higher this morning. But market sources in North Asia say North Korea now takes about 6 million barrels/year of Chinese crude. "A similar production level is also anticipated for September", the Saudi ministry said.
Restarting refineries after flooding is a slow and complicated process plagued with safety risks ("After Harvey: precautions needed during oil and chemical facility start up", U.S. Chemical Safety Board, Aug 2017). Much of that refining capacity has now been restored, with the largest single refiner in the country, Motiva, having resumed full production at its 325,000-bpd plant in Port Arthur, Texas, as of Monday, according to sources quoted by Reuters.
"At this point, there is an expected hit to gasoline demand from Hurricane Irma in Florida, but we are hearing that the infrastructure isn't as bad off as feared", said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, in a telephone interview.
The good, bad and ugly from Packers' win over Seahawks
Randall Cobb was the favorite target with 9 catches for 85 yards, majority quick strikes from the slot or crossing the middle. The forced fumble Daniels provided in the third quarter sparked the Packers offense with a touchdown the next play.
The front-month contract in US crude's West Texas Intermediate (WTI) benchmark settled up $0.59, or 1.2%, at $48.07 per barrel on the New York Mercantile Exchange.
Average daily oil production by OPEC countries decreased by 79,000 barrels in August in comparison with July to 32.75 million barrels, OPEC said in its September report. The producers are seeking to strengthen compliance with the cuts accord they reached a year ago.
Kuwait- Saudi Minister of Energy, Industry, and Mineral Resources Khaled al-Faleh discussed with his counterparts in Venezuela, UAE and Kazakhstan the possibility to consider expanding production cuts as an options in the next meeting of producers in November.
Non-Opec Kazakhstan is aiming for a stand-alone deal with Opec on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said last week.