Oil is rising ... and American refineries bypass Hurricane "Laura"
American producers have stopped producing 1.56 million barrels per day of oil. ■ Getty Images
Oil prices rose yesterday, to offset limited losses incurred in a previous trading session, at a time when a great storm is blowing on the American soil, bypassing the heart of the US oil industry in Louisiana and Texas, without causing large-scale losses to the refineries.
Brent crude futures, for October 2020 delivery, which expired yesterday, rose five cents to $ 45.14 a barrel, and are heading towards a weekly gain of 1.8%. November contracts also rose, the most active, seven cents to 45.67 dollars.
US West Texas Intermediate crude futures increased by a cents to $ 43.05 a barrel. The benchmark is heading 1.7% higher this week, making gains for the fourth consecutive week. Hurricane "Laura" swept through Louisiana early yesterday, destroying buildings, falling trees, and cutting electricity for more than 650,000 people in Louisiana and Texas, but refineries averted fears of massive floods.
But analysts say investors are turning their fear of stalled production into a hit in demand.
American producers stopped producing 1.56 million barrels per day of crude oil, or the equivalent of 83% of the Gulf of Mexico production, while about nine refineries stopped about 2.9 million barrels per day of production capacity, or the equivalent of 15% of the refining capacity in the United States.