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Oil Prices Are Rising Within 2% On The Risks Of A Reduction In Production In The United States

Oil Prices Are Rising Within 2% On The Risks Of A Reduction In Production In The United States

Oil prices are rising within 2% on the risks of a reduction in production in the United States.

Global oil prices are rising within 2% on Tuesday evening amid continuing risks of a reduction in oil production in the United States due to hurricane Sally, according to trading data.

As of 18.45 GMT, the price of November futures for Brent North Sea oil mix was growing by 1.54%, to $40.22 per barrel, and October futures for WTI crude oil were rising by 1.77%, to $ 37.92 per barrel.

Traders are monitoring the situation with hurricanes in the US, which may put pressure on oil production in the country. So, according to the US Bureau of Safety and Environmental Control (BSEE) on Tuesday, US oil companies stopped more than 20% of oil production in the Gulf of Mexico due to hurricane Sally, which intensified to a dangerous second category on the way to the US state of Louisiana.

"Severe weather conditions in the United States create some unpredictability regarding oil production, and this is always good news for prices," said Rystad Energy analyst Bjornar Tonhaugen, whose opinion is quoted by Reuters.

Meanwhile, a new assessment of the situation on the world oil market from the International Energy Agency (IEA) showed that the sharp recovery in global demand for raw materials, which arose after the easing of coronavirus restrictions in many countries, stopped due to the threat of a "second wave" of infections.

Now traders are waiting for the meeting of the OPEC+ Ministerial monitoring Committee (JMMC). It will take place on Thursday, September 17. According to media reports, OPEC+ does not intend to announce an additional reduction in oil production, despite the fall in prices.

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