Illustration of an oil refinery. (BETWEEN PHOTOS / Aguk Sudarmojo)

Oil Production in the Gulf of Mexico has Recovered, World Oil Prices Declined 2.5%

Estella Claudia
Market & Investment
Stocks & Bonds
Jul 19, 2019
2049
USA - According to Reuters on Friday (7/20), Brent crude oil futures were declined to USD 1.73 or 2.7 % to USD 61.93 per barrel. This also happened to the price of crude oil in US futures trading, West Texas Intermediate that were also declined to 7 cents, or 0.1%, to USD 59.51 per barrel.

It is reported that crude oil declined in trading sector since Monday after Hurricane Barry passed without causing damage as initially feared. This allows work to be carried back as more than 280 production stations have been evacuated and ready to operate again and making the world oil price declined up to 2,5%.

This situation also supported by the pressure from the economy given as the weakening of US capital markets that has occurred for three consecutive weeks and also the tensions in the Middle East.

However, according to Reuters, several market players stated that the projection of oil prices for the long term are strongly depressed and speculators and investors have also quit the positions that can put pressure on higher prices in the next few years starting from this month.

Mizuho Bob Yawger, an Energy Director in New York stated that oil prices declined after a sharp rise in US fuel oil, one of them was gasoline. This condition affected the weakening demand during the driving season in the US, even though usually, gasoline consumption rises in the summer when many people are usually having their long road trips.

Source: https://www.cnnindonesia.com/ekonomi/20190719070503-85-413498/produksi-minyak-di-teluk-meksiko-pulih-harga-minyak-keok

Oil , Production , Mexico , World , Prices , Declined , Hurricane , Barry