Crude oil trades flat as tropical storm Nicholas hit Texas

Highlights

  • Crude oil traded nearly flat on Tuesday.
  • Tropical storm Nicholas hit Texas on Tuesday.
  • Two weeks ago, Hurricane Ida made landfall on the US Gulf Coast.

Crude oil traded nearly flat on Tuesday due to tropical storm Nicholas that hit the coast of Texas bringing heavy rain and power outages in the region. November delivery Brent Crude oil futures last traded at US$73.94 per barrel up 0.08%, whereas October delivery WTI crude oil futures traded 0.53% up at US$70.83 per barrel as of 15 September 2021 at 10:09 AM AEST.

As per the records of the regulator Bureau of Safety and Environmental Enforcement (BSEE) more than 39% of the production in the Gulf of Mexico remained close as of Tuesday. Nicholas hit Texas on Monday and is expected to reach Louisiana on Wednesday. The International Energy Agency (IEA) foresees a recovery of 1.6 million bpd in October 2021 which is expected to grow in the remaining year.

Bottom Line:

Crude oil traded nearly flat on Tuesday due to the devastating impacts of tropical storm Nicholas followed by Hurricane Ida, which hit the US Gulf Coast nearly two weeks ago.

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