Oil Mixed, With Producers Bracing for Hurricane Laura

By Administrator_India

Capital Sands

Oil was mixed on Wednesday morning in Asia, with producers shutting off most offshore output in the Gulf of Mexico ahead of Hurrican Laura.

Brent oil futures were up 0.24% to $46.40 by 12:06 AM ET (5:06 AM GMT) and WTI Futures inched down 0.02% to $43.34.

As many as 310 offshore facilities have been evacuated, and around 84% of Gulf of Mexico offshore production has been shut down as the industry prepares for a major hurricane strike. Laura poses the region’s biggest storm threat since Hurricane Katrina in 2005, which caused a 90% shutdown.

But prices were boosted by the optimism over U.S.-China relations, with officials from both countries reaffirming commitment to their phase one trade deal. China’s recommitment to the deal could see a potential boost in flows between two of the world’s largest oil consumers.

Also capping losses was Tuesday’s data from the American Petroleum Institute  predicting a fall in crude oil supplies. API reported a draw of 4.5 million barrels, slightly larger than the previous week’s 4.26 million-barrel draw.

Investors now await inventory data from the U.S. Energy Information Administration , due later in the day.

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