Oil prices extend losses as US producers rest

  • Brent crude for December fell 55 cents, or 1.3%, to $42.30 a barrel.
A long exposure image of a crude oil pump jack used for representational purpose. (REUTERS)
A long exposure image of a crude oil pump jack used for representational purpose.

Oil prices dropped for a second straight session on Monday as US producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.

Brent crude for December fell 55 cents, or 1.3%, to $42.30 a barrel by 0023 GMT and US West Texas Intermediate for November was at $40.08 a barrel, down 52 cents, or 1.3%.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

Front-month prices for both contracts gained more than 9% last week, the biggest weekly rise for Brent since June, but fell on Friday after Norwegian oil firms struck a wage bargain with labour union officials, resolving a strike that threatened to cut the country's oil and gas output by close to 25%.

"We had good support for both Brent and West Texas on the back of some supply concerns," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Given that the hurricane season in the US has just started, there's potential for that to keep prices firm."

In the United States, Hurricane Delta, which dealt the greatest blow to US offshore Gulf of Mexico energy production in 15 years, was downgraded to a post-tropical cyclone by Sunday.

Workers headed back to production platforms on Sunday while Total SA continued restarting its 225,500 barrel-per-day Port Arthur, Texas, refinery on Sunday.

However, Colonial Pipeline, the largest oil products pipeline in the United States, shut its main distillate fuel line after the hurricane disrupted power, the company said on Sunday.

First Published Date: 12 Oct 2020, 07:36 AM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.