Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Oil Cruises to 4th Weekly Gain Despite Risk-Off Friday

Published 09/17/2021, 01:41 PM
Updated 09/17/2021, 01:44 PM
© Reuters.

By Barani Krishnan

Investing.com - Oil cruised to a fourth straight weekly gain, riding on the impact of unexpected supply shortages from the three-week old Hurricane Ida, despite a risk-off sentiment across markets on Friday that weighed partially on crude prices.

New York-traded West Texas Intermediate, the benchmark for U.S. oil, settled at $71.97 per barrel, down 64 cents, or 0.9%. WTI was up 3% on the week, though.

London-traded Brent crude, the global benchmark for oil, finished Friday’s official trade at $75.34, down 33 cents, or 0.4%. Brent also rose about 3% on the week.

Also weighing on markets was President Biden’s plan to raise corporate taxes by 5.5 percentage points to 26.5% and next week’s Federal Reserve meeting that could revisit the subject of taper for the central bank’s stimulus program that has juiced stock prices over the past 18 months.

“It’s a risk-off day that scalped a few heads, including oil’s,” said John Kilduff. “But crude is still cruising on the supply tightness caused by Ida. There’s some talk today that the situation is easing. But it’s nowhere near enough to cause a meaningful correction in oil that will happen — at some point.”

Ida forced the closure of 90% of oil production facilities on the U.S. Gulf of Mexico prior to making its landfall on Aug. 29

As of Thursday, some 18 days after the storm’s landfall, some 513,878 barrels equivalent of oil, or 28.24% of the production in the U.S. Gulf Coast of Mexico remained shut-in, according to the Bureau of Safety and Environmental Enforcement, the government agency monitoring the situation.

U.S. crude crude stockpiles dropped by 6.422 million barrels in the latest week to Sept. 10 on heavier-than-expected drawdown from inventories by refiners facing a squeeze in domestic crude supply, data from the Energy Information Administration showed.

Analysts polled by Investing.com had forecast a drop of 3.544 million barrels for the week to Sept. 10. In the previous week to Sept. 3, crude draws hit four-week lows from Ida-related disruptions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.