Oil Rises As US Refineries Restart, Irma Wanes

Oil Rises As US Refineries Restart, Irma Wanes

Oil Rises As US Refineries Restart, Irma Wanes

In the wake of the hurricanes Harvey and Irma, oil demand is expected to drop by some 900,000 bpd this month, Goldman Sachs said on Monday. Still, Hurricane Irma knocked out power to almost 4 million homes and businesses in Florida on Sunday as it drifted up the west coast of the state toward southern Georgia on Monday as a tropical storm.

Brent crude rose 53 cents or 0.9 percent to $54.37 per barrel by 11:56 a.m.(1556 GMT).

The deal agreed late a year ago to reduce output by about 1.8 million bpd until March 2018 helped to keep prices as high as $58 a barrel in January, but they have since sagged as global stocks have not fallen as quickly as expected.

October West Texas Intermediate crude CLV7, +1.20% tacked on 59 cents, or 1.2%, to settle at $48.07 a barrel on the New York Mercantile Exchange after tapping a low at $47.

Oil prices recouped some losses on Tuesday, helped by OPEC saying its output fell in August, indicating a production-cutting deal with non-member countries is helping to tackle a supply gut.

The Organization of the Petroleum Exporting Countries (OPEC) raised the forecast for the volume of world oil demand in 2017 by 280,000 barrels per day - up to 96.77 million barrels, according to the OPEC updated report.

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Last week, Goldman Sachs said that reconstruction in Hurricane Harvey's aftermath was expected to be ultimately positive for U.S. oil demand in a few months, as fuel consumption is expected to increase when people start rebuilding homes.

Weekly U.S. inventories data will be able to shed some light on the hurricanes' impact.

A Reuters poll of six analysts taken ahead of inventory reports forecast that crude stocks likely rose by 2.3 million barrels in the week ended September 8. It is also costing them market share to rivals, including partner Russian Federation and the U.S.

Harvey struck the US oil hub of Texas two weeks ago, knocking out a quarter of the nation's refineries. Some OPEC and non-OPEC ministers have been in discussions in recent days over their production cut strategy, with one of the options on the table being to extend the output restraint agreement beyond its current expiration at the end of March 2018.

In a deal aimed at clearing the glut, OPEC is curbing output by about 1.2 million bpd, while Russian Federation and other non-OPEC producers are cutting half as much, until March 2018.

NEW YORK, Sept 12 (Reuters) - Oil prices rose nearly 1 percent on Tuesday after OPEC said its output fell in August and forecast higher demand in 2018, indicating its production-cutting deal with non-member countries is helping to tackle a supply glut.

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