The oil market ended the trading session on Thursday in the red. WTI crude oil fell 1.1%, closing the day at $ 45.64 a barrel.
Earlier, the price of oil has renewed its maximum since March 2020 amid fears about a drop in oil production, as well as damage to the energy infrastructure, which may cause hurricane Laura. According to the US Bureau of Safety and Environmental Control (BSEE), at the very beginning of the week, the companies evacuated 310 offshore facilities and stopped production of 1.56 million barrels per day, which is 84.3% of production on the shelf of the Gulf of Mexico. By comparison, Hurricane Katrina halted 90% of production 15 years ago.
Despite concerns, Hurricane Laura never made it to the heart of the US refining sector and related infrastructure on the Gulf Coast. The hurricane reached southwestern Louisiana on Wednesday. However, as it moved inland, the storm weakened. Thus, the damage from the hurricane was less significant than previously expected. At the same time, representatives of the refinery in the area where the elements were raging have already announced plans to resume refining, and oil companies have announced their intentions to increase production at offshore fields in order to ensure the fulfillment of contractual obligations.
Since the topic of potential disruptions in oil production in the United States due to the impact of the disaster in the Gulf of Mexico faded into the background, market participants will have to focus on the previous fundamental factors of the movement of oil prices. First of all, we are talking about the still suppressed demand for hydrocarbons from the world economy, as well as the growth of oil production in the OPEC + countries and the United States. Baker Hughes' report on active oil platforms in the US will be presented to traders today at 20:00 Moscow time. In case of another increase, the risk of an additional increase in supply from American oil companies may well provoke another wave of sales.
WTI SellStop 42.80 TP 40.10 SL 43.50
Analytical reviews and comments to them reflect the subjective opinion of the authors and are not a recommendation for trading. Author Artem Deev is a trader analyst at AMarkets . Forex social network special is not responsible for possible losses in case of using the review materials
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