MOSCOW (MRC) -- Oil fell on Tuesday on expectations for demand to fall after Hurricane Ida shuttered refiners on the US Gulf Coast, and as producing nations in OPEC+ geared up to meet on Wednesday with the United States calling for suppliers to pump more crude, reported Reuters.
Brent crude futures for October, due to expire on Tuesday, fell 39 cents, or 0.5%, to USD73.02 a barrel by 11:08 a.m. EDT (1508 GMT). US West Texas Intermediate (WTI) crude futures were down 43 cents, or 0.6%, at USD68.78.
Both benchmarks were on track for their first monthly loss since March but were still not far from their July highs, when Brent rose to its strongest since 2018 and US crude since 2014.
Hurricane Ida, which made landfall in the United States on Sunday as a Category 4 hurricane, knocked out at least 94% of offshore Gulf of Mexico oil and gas production and caused "catastrophic" damage to Louisiana's grid.
Prices were pressured by concerns that power outages and flooding in Louisiana after Hurricane Ida will cut crude demand from refineries.
About 1.7 million bpd of offshore oil production was shut, but that output may resume more quickly than many refining operations along the Gulf that lost power and have limited access. Analysts at FGE said in a Tuesday note they expect roughly three-quarters of offshore output to resume by the end of the week.
OPEC and allied producers in OPEC+ had agreed to add 400,000 barrels per day (bpd) to monthly supply until the end of December. Sources told Reuters the group is likely to maintain that plan despite US pressure for more output.
OPEC's own data showed the market will face a deficit until the end of 2021 but then flip into a surplus in 2022.
As MRC informed previously, crude oil stockpiles fell modestly in early August, while gasoline inventories dipped to their lowest level since November, according to the US Energy Information Administration. Crude inventories fell by 447,000 barrels in the week to Aug. 6 to 438.8 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel drop. Overall crude inventories have been on the decline for several weeks due to increased demand.
We remind that US crude oil production is expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.12 million bpd, the US Energy Information Administration (EIA) said in a monthly report, a smaller decline than its previous forecast for a drop of 210,000 bpd.
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