International Oil Price fall.. Due to Storm “Gordon”
International oil prices fell more than 1 percent on Wednesday. Storms that hit the US Gulf Coast have escaped oil drilling areas. Concerns of Turkish currency crisis could hinder demand remained in the market.
US light crude oil (WTI) was traded at $ 68.72 per barrel, fell $ 1.15, or 1.65 percent. Brent oil fell 90 cents, or 1.15 per cent, to $ 77.27 a barrel.
Oil prices rose on the day before. Oil companies have shut down oil drilling facilities concerning the damage that could be caused by the tropical storm ‘Gordon’. However, storms did not develop into hurricanes. In addition, energy companies and transporters of the Gulf Coast area of the US continued preparations for resuming operations until today.
“Oil prices rose yesterday as forecasts indicated that storms will hit oil refineries, but oil production has dropped slightly, and oil refineries in Mississippi and Louisiana are still operating.
According to the US Bureau of Environment and Enforcement (BSEE), companies have stopped oil refinery which can produce an average of 156,907 barrels a day.
The fact that the trade war between the United States and China is causing concern about demand also contributed to the weakening of oil prices. US President Donald Trump may impose tariffs on Chinese products worth $ 200 billion.
OPEC Secretary General Mohamed Barkindo said that global trade friction could hurt future energy demand.
The currency crisis in Turkey was also a factor in lowering oil prices. Turkish lira value has declined more than 40% this year.
Oil prices may rise according to the result of amount of US crude inventories this week (August 31).