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Oil Prices Increase as US Supply Concerns Dominate

Oil Prices Increase as US Supply Concerns Dominate
Oil Prices Increase as US Supply Concerns Dominate

Oil prices rose for a second session on Monday, as concerns over US output following damage from Hurricane Ida supported the market, along with expectations for higher demand.
Brent crude rose 33 cents, or 0.5% to $73.25 a barrel, and US West Texas Intermediate crude also added 32 cents, or 0.5%, to $70.04, Finance.yahoo.com reported.
Both markets were at their highest since Sept. 3 earlier in the session.
About three-quarters of the offshore oil production in the US Gulf of Mexico, or about 1.4 million barrels per day, has remained halted since late August, roughly equal to what OPEC member Nigeria produces.
"To compound matters, more oil refineries in Louisiana have resumed operations, raising demand for crude oil," ANZ analysts said in a note.
US refiners are coming back faster than oil production from the impact of Hurricane Ida, a reverse of past storm recoveries. 
Most of the nine Louisiana refineries impacted by the storm have restarted or were restarting operations on Friday.
 

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