Oil Near Peak of 5 Months Thanks to the US Production Cut

Oil rose today, Wednesday, to about $ 46 a barrel, near the highest level since March, with the support of American producers stopping most of the offshore production from the Gulf of Mexico before Hurricane Laura and a report showing a decline in US crude stocks. But the gains were limited by renewed fears about the Coronavirus pandemic, which reduced demand for fuel after reports of recovered people in Europe and Asia with Covid-19 again, which raised fears about immunity in the future.

Brent crude added two years to $ 45.88 a barrel by 08:15 GMT, while US West Texas Intermediate crude lost three cents to $ 43.32 a barrel. And the two crudes closed on Tuesday at the highest level in five months.

On Tuesday, the energy sector in the United States prepared for a powerful hurricane. Producers have halted production of 1.56 million barrels per day of crude, which represents 84% ​​of offshore production in the Gulf of Mexico, close to 90% of the stoppage caused by Hurricane Katrina 15 years ago.

Prices were also supported yesterday by the US and Chinese officials’ confirmation of their commitment to the Phase One trade agreement. Further support came from the American Petroleum Institute data, which showed that US crude stocks fell more than expected in the past week.