Oil market news

Tue, Sep 12 2017, 06:03 GMT

by Fort Financial Services

Oil prices were trading lower in early hours on Tuesday, as market players weighed hurricane Irma’s negative effect on demand while refineries in the US continued to restart operations following hurricane Harvey.

 

The US West Texas Intermediate crude futures were trading 0.06 percent lower at $48.08 per barrel as of 07:10 GMT, while the London-based Brent contracts were down 0.06 percent to trade at $53.81 per barrel on the ICE Futures Exchange.

 

Crude benchmarks settled in green territory on Monday, as investors were cheered following Saudi Arabia’s decision to hold negotiations with other nations about a potential deal to extend the so-called output cuts deal beyond March 2018.

 

Saudi Arabia’s energy minister and OPEC’s de facto leader Khalid al-Falih gathered with his counterparts from Venezuela and Kazakhstan to discuss the terms of such initiative.

 

Earlier this year, OPEC and non-OPEC nations agreed to extend the production cuts agreement until March 2018, with a target daily reduction of 1.8 million barrels.

 

Market sentiment was also supported by a weaker-than-expected hurricane Irma, which made landfall in the US on Sunday morning and has been downgraded to a Category 2 storm.

 

Market analysts said Irma is not expected to produce negative effects on oil production or processing, but it could have some impact on demand levels.

 

Ahead in the day, traders will focus on the release of monthly reports from the OPEC and the International Energy Agency, as well as inventories data from the American Petroleum Institute.

Published on Tue, Sep 12 2017, 06:03 GMT

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