Oil Prices Slip as Gulf of Mexico Production Restarts, U.S. Output Weighs
Investing.com - Oil prices dipped on Tuesday as oil rigs in the Gulf of Mexico prepared to restart production following Hurricane Barry, while fresh evidence of rising U.S. output weighed ahead of weekly inventory data.
Investing.com - Oil prices dipped on Tuesday as oil rigs in the Gulf of Mexico prepared to restart production following Hurricane Barry, while fresh evidence of rising U.S. output weighed ahead of weekly inventory data.
New York-traded West Texas Intermediate crude futures dropped 7 cents, or 0.1%, to $59.51 a barrel by 8:07 AM ET (12:07 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S., slipped 9 cents, or 0.1%, to $66.39.
Crude declined on Monday after Barry passed without causing as much damage as feared, allowing workers to start returning to more than 280 production platforms that had been evacuated.
In a process that is expected to take several days, the U.S. Bureau of Safety and Environmental Enforcement SEE reported that 69% of the output in the Gulf of Mexico remained shut as of Monday, compared to 73% on Sunday.
In a monthly report released Monday, the Energy Information Administration said output from seven major U.S. shale formations is expected to rise to a record 8.55 million barrels per day in August.
The forecast follows reports from both OPEC and the International Energy Agency that implied rising U.S. production could tip world markets back into a glut. It also comes amid evidence that the OPEC-led agreement on output restraint - another key factor in global supply - is being undermined by various countries.
Iraq, Nigeria and non-OPEC Kazakhstan all reportedly produced above their agreed quotas in June.
U.S. production will also be in focus in the EIA’s weekly inventory report released on Wednesday that includes readings of output.
Last week’s release showed that U.S. production ticked up to hover near record highs.
Ahead of the EIA report, the American Petroleum Institute will release its own weekly stockpile data, among expectations that U.S. inventories declined 3.38 million barrels in what would be its fifth straight weekly draw.
In other energy trading, gasoline futures lost 0.4% to $1.9229 a gallon by 8:08 AM ET (12:08 GMT), while heating oil inched up 0.1% to $1.9527 a gallon.
Lastly, natural gas futures traded down 3.0% to $2.337 per million British thermal unit.
-- Reuters contributed to this report.
New York-traded West Texas Intermediate crude futures dropped 7 cents, or 0.1%, to $59.51 a barrel by 8:07 AM ET (12:07 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S., slipped 9 cents, or 0.1%, to $66.39.
Crude declined on Monday after Barry passed without causing as much damage as feared, allowing workers to start returning to more than 280 production platforms that had been evacuated.
In a process that is expected to take several days, the U.S. Bureau of Safety and Environmental Enforcement SEE reported that 69% of the output in the Gulf of Mexico remained shut as of Monday, compared to 73% on Sunday.
In a monthly report released Monday, the Energy Information Administration said output from seven major U.S. shale formations is expected to rise to a record 8.55 million barrels per day in August.
The forecast follows reports from both OPEC and the International Energy Agency that implied rising U.S. production could tip world markets back into a glut. It also comes amid evidence that the OPEC-led agreement on output restraint - another key factor in global supply - is being undermined by various countries.
Iraq, Nigeria and non-OPEC Kazakhstan all reportedly produced above their agreed quotas in June.
U.S. production will also be in focus in the EIA’s weekly inventory report released on Wednesday that includes readings of output.
Last week’s release showed that U.S. production ticked up to hover near record highs.
Ahead of the EIA report, the American Petroleum Institute will release its own weekly stockpile data, among expectations that U.S. inventories declined 3.38 million barrels in what would be its fifth straight weekly draw.
In other energy trading, gasoline futures lost 0.4% to $1.9229 a gallon by 8:08 AM ET (12:08 GMT), while heating oil inched up 0.1% to $1.9527 a gallon.
Lastly, natural gas futures traded down 3.0% to $2.337 per million British thermal unit.
-- Reuters contributed to this report.
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