Oil falls on second session as U.S. Gulf reopens production
Oil prices fell for a second session on Monday as U.S. producers resumed production in The Gulf after Hurricane Delta’s passage. Meanwhile, a strike in Norway that threatened to cut production has ended.
Brent crude for December delivery slid 1.3%, or 55 cents, at $42.30 per barrel. U.S. West Texas Intermediate for November contract fell 1.3%, or 52 cents, at $40.08 per barrel.
Both benchmarks climbed over 9% last week, the highest weekly rise for Brent since June. However, both fell on Friday when Norwegian oil firms agreed on a wage bargain with labour union officials, resolving the ongoing strike.
Hurricane Delta, which shut down U.S. offshore oil production in The Gulf, was downgraded to a post-tropical cyclone by Sunday.
Workers returned to production platforms over the weekend. However, Colonial Pipeline, the United States’ biggest oil products pipeline closed its main distillate fuel line after the hurricane damaged power.