U.S. Oil Producers Brace For Storm – 26 August, 2020

A massive storm approaching the Gulf of Mexico heading for major U.S. oil producers caused them to shut down production as they await damage assessment once the storm passes. U.S. West Texas Intermediate crude futures fell 0.1% or 4 cents to $43.35 per barrel. Brent crude futures October contract, expiring on Friday, was 5 cents higher at $45.69 per barrel, having dipped 0.5% or 22 cents the previous session. Despite the storm, experts predict supplies will be little affected as an oversupply has remained largely untouched since the coronavirus forced so many people to shelter in place. U.S. crude inventories seemed little affected by the larger than expected 4.7 million barrel drop as supplies remained at 507.8 million barrels for the week of August 21.