Oil prices have closed on Friday with falls of approximately $2 dollars, as US supply disruptions in the Gulf of Mexico are expected to be short-term. In addition, fears of recession and a drop in demand also support the drop in crude oil.
Shell, which is the leading oil producer in the US Gulf of Mexico, announced that it has halted production at three deepwater platforms in the region.
The company, however, clarified that a damaged piece of a pipeline is expected to be replaced, allowing production to resume on seven oil rigs, a Louisiana port official told The Associated Press. Reuters.
Prices of a barrel of Brent and Texas oil today, August 13: how much does it cost and how much is it quoted?
With the market closed, this Saturday, US West Texas Intermediate (WTI) crude is down $2.25, or 2.38%, trading at $92.09. Secondly, Brent futures are trading at $98.15 per barrel with a drop of 1.46% or $1.45 dollars, according to OilPrice.com, a website that offers more than 150 oil indices and mixtures worldwide.
Despite the price drop on Friday, both futures posted a weekly gain. Brent gained 3.4% this week after last week’s 14% drop on fears that rising inflation and interest rates would hit economic growth and fuel demand. In the meantime, WTI gained 3.7% this week.
On the other hand, oil prices could rise again later this year and recoup the losses of recent weeks, as European sanctions on Russian oil come into force in December, affecting supply.