Oil Prices Steady as Facilities Resume Operations in U.S. Gulf

Investing.com - Oil prices steadied on Tuesday in Asia as more production facilities resumed output in the U.S. Gulf after Tropical Storm Barry made landfall in Louisiana on Saturday.

U.S. Crude Oil WTI Futures was little changed at $59.60 by 12:30 AM ET (04:30 GMT). International Brent Oil Futures gained 0.1% to $66.55.

Barry weakened back to a tropical depression overnight. Producers have now restored 74% of the shutdown at U.S. Gulf of Mexico output, Reuters reported, adding that concerns about oversupply have also returned.

“Tropical Storm Barry could have been a lot worse,” Phil Flynn, energy analyst and typically an oil bull said.

“Yet it might not be just the passing of Barry that could ease upward pressure on oil prices, but also the possibility that geopolitical storms with Iran may start to see the skies clear,” he added.

Meanwhile, data that showed Chinese economic growth slowed to a 27 years low had little impact on oil prices as other reports that indicated better-than-expected increases in industrial output, retail sales and capital spending in June boosted hopes that the world’s second largest economy may be stabilizing.

On the Sino-U.S. trade front, U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer will reportedly travel to Beijing for trade negotiations if talks by phone this week are productive, according to Bloomberg.

China and the U.S. agreed to resume talks after President Donald Trump met with Chinese leader Xi Jinping last month in Japan.

Related Articles

Gulf conflict would see oil prices spike, ease, jump again: research

Oil down for a second day as U.S. Gulf of Mexico output returns

Gold Prices Up Despite Bullish Data; U.S., China Resume Trade Talks This Week