Oil prices mixed as storms threaten U.S. Gulf production
Crude oil prices were mixed on Tuesday as massive output cuts in the U.S. Gulf Coast due to Tropical Storms Marco and Laura weighed amid the pandemic.
Brent crude oil futures rose 0.3%, or 14 cents, at $45.27 per barrel. U.S. West Texas Intermediate crude lost 0.1%, or 4 cents, at $42.58 per barrel.
Energy companies shut down 82% of the production in the U.S. Gulf Coast refineries as the two storms hit the region this week. However, producers decided to slash total output as the storms forced workers out of the region for days.
Producers have cut over 1.5 million bpd of offshore production in the Gulf Coast, almost 14% of the total U.S. oil output.
Elsewhere, top U.S. and Chinese officials are making progress in the Phase 1 trade deal negotiations and both sides are committed to making a successful agreement.
Meanwhile, U.S. crude inventories fell for a fifth straight week, while refined product stockpiles also dropped.