Oil sinks on hurricane-beaten Louisiana
Oil prices dropped on Tuesday following Hurricane Ida’s landfall on Louisiana. Ida’s touchdown on Louisiana raised concerns that power outages and flooding in the state will cut crude from refineries at the same time that global producers intend to increase production.
Brent crude futures for October, set to expire on Tuesday, dipped 0.6%, or 46 cents, at $72.95 a barrel after gaining 1% on Monday. The more active November contract declined 0.6%, or 42 cents, to $71.81.
US West Texas Intermediate (WTI) crude futures edged down 0.6%, or 41 cents, to $68.80 a barrel by 0245 GMT, backtracking on most of Monday’s gains.
Hurricane Ida closed down or reduced the production of six refineries in Louisiana that process 1.92 million barrels per day (bpd), around 12% of the US refining capacity.
Another factor that kept oil prices in check is that the Organization of Petroleum Exporting Countries and allies (OPEC+) greenlighted plans to add 400,000 bpd of supply each month until December.