Baxia Markets
September 21, 2021

Crude Oil Declines As Platform Shut Down

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Futures in New York had dropped the most in a month earlier, owing to lower equities markets and a strengthening of the US dollar, which made commodities priced in the currency less appealing. Shell's WD-143 "A" platform facilities, which were damaged by Hurricane Ida, will be down for repairs until the end of 2021, according to a statement released on Monday. As a result, production on the Mars and Ursa platforms will not resume until 2022.





Traders are also continuing to monitor the energy crunch in Europe amid talk of switching from gas to oil. There are expectations diesel demand will expand in Asia during winter, while the use of oil to generate power in the U.S. may jump. The prompt time spread for Brent was 85 cents a barrel in backwardation -- a bullish structure where near-dated contracts are more expensive than those further out.


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