Oil rebounded from 9-month lows due to reduced supply in the Gulf of Mexico

Oil rebounded from 9-month lows due to reduced supply in the Gulf of Mexico

Oil regained much of what it had lost the previous day due to the impact of the climatic phenomenon on the American Gulf Coast, We put aside the recurring fears of recession that have affected its value in recent days.

“Oil is currently under the influence of financial forces,” he said. tamas farga, from the PVM oil corridor in an interview with Reuters. “In the meantime, relief surges, such as the one this morning from Hurricane Ian in the American Gulf, are temporary events.”

Expect to reduce the offer by decision of OPEC The hurricane sent oil prices higher, which changed the trend shown by the appreciation of the dollar, which had reached its highest levels in 20 years.

The Crude Oil Soared Early 2022 It reached its highest level ever after the Russian invasion of Ukraine. This also had an impact on gas supplies to Europe, increasing the cost of living for citizens, which governments reinforced measures to control international prices. of between it , G7 Encourage a cap on the price of Russian oil that is transported through Western companies. This led to Russia threatening to cut off the supply.

On the other hand, fear was one of the factors that played against high oil prices Recession for him cooling economic activityespecially after Rising prices driven to contain inflation.

Due to Hurricane Ian’s proximity to the Gulf of Mexico, companies such as BP and Chevron They announced that they would stop production of their offshore platforms. On the other hand, the drop in prices led to an alert OPEC He announced that he could set a price for a basket of crude oil at around $100 and that he could revise its price Supplying crude oil to the market.

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