Oil is stabilizing as Hurricane Ida weakened, OPEC + in focus

Oil prices stabilized on Monday, relinquishing much of its earlier surge to a four-week high as Hurricane Ida weakened after stalling oil production in the Gulf of Mexico and OPEC + a planned hike Promised oil production. Within 12 hours of arriving at the coast, the storm had weakened to a Category 1 hurricane. Almost all of the offshore oil production in the Gulf of Mexico, i.e. H. 1.74 million barrels per day was exposed in the run-up to the storm. Brent crude rose 11 cents, or 0.2%, by 1135 GMT to $ 72.81 after previously hitting $ 73.69, its highest level since August 2. US crude fell 30 cents, or 0.4%, to $ 68.44 after previously hitting $ 69.64, its highest level since August 6. "Hurricane Ida will determine the near-term direction of oil prices," said Jeffrey Halley, senior market analyst at OANDA. "If Ida weakens and its destructive power is less than expected, the oil price hike will temporarily lose momentum here. While crude oil fell in anticipation of a rapid recovery in supply, US gasoline prices rose nearly 2% as power outages added to Gulf Coast refinery closures and traders weighed the possibility of extended disruptions. "It's far too early," said Vivek Dhar, an analyst at the Commonwealth Bank of Australia (OTC: CMWAY). "Prices for oil products such as gasoline and diesel are likely to rise more rapidly due to refinery outages, especially if there are difficulties getting refineries and pipelines back on track." Brent is up 40% this year, driven by supply cuts by the Organization of Petroleum Exporting Countries and its allies (OPEC +), as well as some recovery in demand after the pandemic slump last year. OPEC + meets on Wednesday to discuss a proposed 400,000 bpd increase in its oil production, which would further ease last year's record production cuts. OPEC delegates expect the increase to take place, although the Kuwaiti oil minister said on Sunday that it could be reconsidered.