Oil prices mixed as Hurricane Ian output cuts support, dollar weighs



*

API shows U.S. crude, distillate stocks rise -market sources

*

Producers begin returning workers to oil platforms in U.S. Gulf

By Laila Kearney

Sept 28 (Reuters) - Oil prices were mixed in early Asian trade on Wednesday as support from U.S. production cuts caused by Hurricane Ian contended with crude storage builds and a strong dollar. Brent crude futures LCOc1 fell 4 cents, or 0.1%, to $86.23 per barrel by 0022 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 22 cents at $78.03 per barrel.

Producers began returning workers to offshore oil platforms after shutting in output ahead of Hurricane Ian, which entered the U.S. Gulf of Mexico on Tuesday and is forecast to become a dangerous Category 4 storm over the warm waters of the Gulf.

About 190,000 barrels per day of oil production, or 11% of the Gulf's total were shut-in, according to offshore regulator the Bureau of Safety and Environmental Enforcement (BSEE). Producers lost 184 million cubic feet of natural gas, or nearly 9% of daily output. Personnel were evacuated from 14 production platforms and rigs, the BSEE said.

Ian is the first hurricane this year to disrupt oil and gas production in the U.S. Gulf of Mexico, which produces about 15% of the nation's crude oil and 5% of dry natural gas.

Limiting oil prices was the U.S. dollar. The dollar, which typically trades inversely with oil, remained near a 20-year high.

Estimates of U.S. oil in storage also sent mixed messages about oil prices.

While U.S. crude oil in storage rose by about 4.2 million barrels for the week ended Sept. 23, according to market sources on Tuesday citing figures from industry group the American Petroleum Institute, gasoline inventories fell by about 1 million barrels.

Distillate stocks rose by about 438,000 barrels, according to the sources, who spoke on condition of anonymity.

The report comes ahead of official Energy Information Administration data on Wednesday at 4:30 p.m. EDT.
Reporting by Laila Kearney in New York; Editing by Leslie Adler

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.