Futures on US West Texas Intermediate Crude Oil eased on Thursday, following a 1.4% surge in the previous trading session, as a drop in oil production in the Gulf of Mexico following damage from Hurricane Ida still supported the market.
Nearly 77% of US Gulf production, or some 1.4 million barrels per day, remained offline on Tuesday, with the market losing almost 17.5 million barrels of oil so far.
“U.S. production is struggling to recover from Hurricane Ida,” ANZ analysts wrote in an investor note, cited by Reuters.
“Extensive damage to infrastructure and power outages mean Ida has knocked off more supply after nine days than any other storm.”
Yesterday the US Energy Information Administration (EIA) said it expected a drop in output by 200,000 barrels per day to 11.08 million barrels per day in 2021. The agency also noted that Hurricane Ida could lead to a sharper output drop than its prior forecast for a decrease of 160,000 barrels per day.
Meanwhile, the American Petroleum Institute (API) reported on Wednesday that US crude oil inventories had decreased by 2.882 million barrels during the week ended September 3rd. A consensus of analyst estimates had pointed to a larger drop, by 3.832 million barrels.
The official report on oil inventories by the US Energy Information Administration is scheduled to be released later today.
As of 8:03 GMT on Thursday WTI Crude Oil Futures were edging down 0.22% to trade at $69.15 per barrel, while moving within a daily range of $68.99-$69.55 per barrel. WTI Crude Oil Futures have risen 0.83% so far in September, following a 7.37% drop in August.
At the same time, Brent Oil Futures were retreating 0.30% on the day to trade at $72.44 per barrel, while moving within a daily range of $72.38-$72.92 per barrel. Brent Oil Futures have risen 1.14% so far in September, following a 4.63% drop in August.
Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures
Central Pivot – $69.12
R1 – $69.93
R2 – $70.56
R3 – $71.37
R4 – $72.18
S1 – $68.49
S2 – $67.68
S3 – $67.05
S4 – $66.42
Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures
Central Pivot – $72.39
R1 – $73.19
R2 – $73.73
R3 – $74.53
R4 – $75.34
S1 – $71.85
S2 – $71.05
S3 – $70.51
S4 – $69.98
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