WTI Crude Oil Eases, On Track For Weekly Gain
Arslan Butt • 1 min read
WTI crude oil prices have dipped slightly early on Friday after surging higher through the week, supported by a workers’ strike in Norway and Hurricane Delta off the Gulf of Mexico. At the time of writing, WTI]] crude oil is trading at around $40.99 per barrel.
Although US oil prices weakened by over 3% during the previous session, they are on track to post a weekly gain of around 10% so far. Supply getting limited due to the workers’ strike and the shutting down of oil production in the Gulf of Mexico region drove prices higher this week even though weak demand concerns limited gains in crude oil.
Oil and gas production in Norway are expected to contract by nearly 25% because of the ongoing strike. Later today, oil company and labor officials are expected to sit down for negotiations in the presence of a state-appointed mediator in hopes for a breakthrough.
Meanwhile, Hurricane Delta has already taken down around 1.5 million bpd of US’s oil output even before it makes landfall. With the storm expected to hit soon, the focus will be on the extent of damage it causes and how long it will take for oil companies to restart operations after it has passed.