Crude Oil Prices Weekly Forecast September 11-15

Crude Oil Prices Weekly Forecast September 11-15

Oil prices declined Friday, with USA crude set for its lowest finish in a week and its second session of losses in a row as domestic refineries saw a slow recovery from flooding due to Hurricane Harvey, which made landfall on the Texas coast two weeks ago.

Prices received another boost amid reports that the Saudi oil minister discussed with his Venezuelan and Kazakh counterparts on Sunday.

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Florida has no refineries of its own and many ports are still closed because of the storm, causing huge demand strains in the region. "However, it would be a challenge to incorporate the US oil-output profile in any exit plan", the expert added. He noted that the impact of Harvey on USA crude demand was "not as weak as initially anticipated", which was providing a slight boost to WTI.

"Hurricanes can have a lasting effect on refinery and industry demand", said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt.

U.S. oil production dropped by nearly 8 percent, from 9.5 million barrels per day to 8.8 million bpd, according to the report of the Energy Information Administration (EIA).

"Irma looks like it will miss the key Gulf areas, and we're more anxious about shale", said Mark Watkins, regional investment manager at U.S. Bank.

The EIA reported that refinery runs last week averaged 14.5 million barrels of crude, a decline from 17.7 million bpd the week before, when the authority also reported a 5.4-million-barrel draw in crude oil inventories.

The reality is that we are far from an oil shortage - in fact, we are still in the midst of what most call a supply glut.

The Department of Homeland Security said it is waiving the Jones Act for a week, which will allow fuel to be shipped by foreign-flagged vessels instead of only USA -flagged vessels to help ensure that emergency responders during Irma and in the wake of Harvey have enough motor fuel.

In the week ahead, market participants will eye fresh weekly information on USA stockpiles of crude and refined products on and to further weigh what the impact of recent storm activity was on supply and demand.

After cutting seven rigs in August, the first monthly reduction since May 2016, drillers cut three oil rigs in the week to September 8, bringing the total count down to 756, energy services firm Baker Hughes energy services firm said.

Futures were little changed in NY, up 3.7% for the week.

Brent prices, meanwhile, slipped back, but held ground near a 5-month high as they continue to find support from higher refinery demand in Europe and Asia.



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