Oil steady as Delta variant weighs on demand recovery


Oil prices rose for a second session on Thursday, recovering from earlier losses.

Brent added 26 cents to $72.86 a barrel while West Texas Intermediate (WTI) crude rose 12 cents, to $69.42 a barrel.

About 77% of U.S. Gulf production remained offline on Tuesday, as the market lost about 17.5 million barrels of oil so far.

U.S. crude oil production is expected to fall by 200,000 bpd in 2021 to 11.08 million bpd, the U.S. Energy Information Administration (EIA) said on Wednesday, noting that Hurricane Ida should force a bigger decline than its previous forecast for a drop of 160,000 bpd.

However, prices were pressured by the U.S. Energy Information Administration on Wednesday cutting its 2021 global oil demand growth forecast with little change to its 2022 estimate.

American Petroleum Institute (API) data showed that crude drawdown for the week ended Sept. 3 was smaller than expected in a Reuters poll, but gasoline and distillate drawdowns were bigger than expected.

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