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Crude Oil Higher; API Supply Data Due By


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By Peter Nurse — Oil prices rose Tuesday, reversing some of the previous session’s sharp losses ahead of the release of the latest oil supply data.

By 9:25 AM ET (1325 GMT), U.S. crude futures were up 0.6% at $70.53 a barrel, while futures were up 0.9% at $74.57 a barrel, after both contracts fell around 2% on Monday.

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Although crude markets are seeing a rise in volatility Tuesday, concerns continue to grow about U.S. output levels in the Gulf of Mexico after Hurricane Ida.

Royal Dutch Shell, the biggest producer of oil in the Gulf said that its West Delta-143 platform (which acts as an intermediary for two other platforms producing oil) will not reopen operations until the first quarter 2022. 

About 18% of the U.S. Gulf’s oil and 27% of its production remained offline on Monday, more than three weeks after Hurricane Ida, according to  the regulator Bureau of Safety and Environmental Enforcement.

After the oil industry body reported a draw last week of more than 5 million barrels, this puts the crude oil supply data of the into focus.

That said, this hiccup in global supply isn’t likely to last much longer as Russia expects oil output next year to be back near its post-Soviet high.

Bloomberg reported that Russian oil companies have increased their combined production of condensate and crude by 8.8% in 2022. They expect to maintain this trend from 2023-2024. This is according to Bloomberg’s draft budget, which was submitted by the Finance Ministry. 

In corporate news, Royal Dutch Shell has confirmed that it will sell its to ConocoPhillips (NYSE:) for $9.5 billion in cash, as American and European producers diverge in the energy focus going forward.


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