People & Money

Oil Prices Slide Further as U.S. Producers Restore Output, but Nigeria’s Bonny Light Gains $0.30 

Oil prices declined for the second successive session on Monday, with United States producers restoring output, following a lull in Hurricane Delta, just as a strike that had disrupted Norwegian production was suspended.

Brent crude, the benchmark for Nigeria’s crude grades, dipped $1.23, or 2.87%, to $41.62 a barrel by 20:00 West Africa Time and U.S. West Texas Intermediate  (WTI)slipped by $1.28 or $3.15 to $39.32.

Bonny Light, Nigeria’s foremost oil grade, climbed 30 cents or 0.72% to $41.88 at the last session.

Also Read: Oil Prices Dip After Norway Oil Workers Halt Strike; Nigeria’s Bonny Light up $0.30

Front-month prices for both Brent and WTI added over 9% in the past week, the largest weekly gain for benchmark Brent since June, but dropped on Friday as oil companies in Norway agreed with labour union officials, calling off an industrial action that was due to reduce the country’s energy production by nearly one-fourth.

“We had good support for both Brent and West Texas on the back of some supply concerns.

“Given that the hurricane season in the U.S. has just started, there’s potential for that to keep prices firm,” Michael McCarthy, chief market strategist at CMC Markets in Sydney said.

Hurricane Delta, which caused the biggest devastation to U.S. offshore Gulf of Mexico oil and gas production in 15 years, was downgraded to a post-tropical cyclone on Sunday.

Also Read: Oil Prices Decline Amidst Soaring Covid-19 Cases, Nigeria’s Bonny Light Gains $0.45

Employees returned to production platforms on Sunday and Total SA continued resuming operations at its 225,000 barrel-per-day Port Arthur, Texas, refinery on Sunday.

Colonial Pipeline, U.S. biggest oil pipeline shut its major distillate fuel line after the hurricane interrupted power, the company said.

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