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Oil prices rise on U.S. production outages
Published by Jessica Weisman-Pitts
Posted on September 28, 2022
2 min readLast updated: February 4, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on September 28, 2022
2 min readLast updated: February 4, 2026
By Shadia Nasralla
LONDON (Reuters) -Oil prices rose on Wednesday in U.S. trading hours as production cuts caused by Hurricane Ian outweighed downward pressure from a strengthening dollar and expected U.S. crude stockpile builds.
Brent crude futures were up 55 cents, or 0.6%, at $86.82 per barrel by 1351 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 94 cents, or 1.2%, to $79.44 per barrel. Both contracts erased earlier falls after rising over 2% in the previous session.
In the Gulf of Mexico, about 190,000 barrels per day of oil production, or 11% of the Gulf’s total, were shut-in due to Hurricane Ian, according to offshore regulator the Bureau of Safety and Environmental Enforcement (BSEE).
Global equities pulled off two-year lows on Wednesday, after the Bank of England said it would step into the bond market to stem a damaging rise in borrowing costs, thereby dampening investors fears of contagion across the financial system. [MKTS/GLOB]
The dollar hit a fresh two-decade peak against a basket of currencies on Wednesday as rising global interest rates fed recession concerns. A strong dollar reduces demand for oil by making it more expensive for buyers using other currencies. [FRX/]
U.S. crude oil stocks rose about 4.2 million barrels for the week ended Sept. 23, while gasoline inventories fell about 1 million barrels, according to market sources on Tuesday, citing figures from industry group the American Petroleum Institute.
Distillate stocks rose by about 438,000 barrels, according to the sources. [API/S] The report comes ahead of official Energy Information Administration data due 1430 GMT.
Goldman Sachs cut its 2023 oil price forecast on Tuesday, due to expectations of weaker demand and a stronger U.S. dollar, but said global supply disappointments only reinforced its long-term bullish outlook.
An upcoming price catalyst will be producer group OPEC+’s Oct. 5 meeting at which Russia is likely to propose an output cut of around 1 million barrels per day, a source familiar with the Russian viewpoint said on Tuesday.
(Additional reporting by Laila Kearney in New York and Isabel Kua in SingaporeEditing by Mark Potter and David Evans)
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally.
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is sourced from the U.S. and is known for its light and sweet characteristics.
Crude oil stockpiles refer to the reserves of crude oil held by a country or company. They are used to gauge supply levels and can influence oil prices.
OPEC+ is a coalition of oil-producing countries that includes the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers like Russia, aiming to manage oil production and prices.
A production cut in oil markets refers to a reduction in the amount of oil that countries or companies produce, often implemented to stabilize or increase oil prices.
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