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Brent crude set for biggest quarterly drop in two years

Brent crude set for biggest quarterly drop in two years

Brent crude set for biggest quarterly drop in two years
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By CNBCTV18.com Sept 28, 2022 11:18:39 AM IST (Updated)

Ian is the first hurricane this year to disrupt oil and gas production in the US Gulf of Mexico, which produces about 15 percent of the nation's crude oil and 5 percent of dry natural gas.

With a 25 percent drop between June to September, brent crude is set for its biggest quarterly drop in nearly two years. The last time brent crude fell over 25 percent in a single quarter was during the January-March period of 2020, during which prices collapsed 65 percent.

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Brent crude prices have now fallen below the $85 mark on Wednesday amidst fears of recession and a stronger US dollar.
Futures are now trading 1.2 percent lower at $83.84, while the West Texas Intermediate is down 1.45 percent at $77.36.
Producers began returning workers to offshore oil platforms after shutting in output ahead of Hurricane Ian, which entered the US Gulf of Mexico on Tuesday and is forecast to become a dangerous Category 4 storm over the warm waters of the Gulf.
About 190,000 barrels per day of oil production, or 11 percent of the Gulf's total were shut-in, according to offshore regulator the Bureau of Safety and Environmental Enforcement (BSEE). Producers lost 184 million cubic feet of natural gas or nearly 9 percent of daily output. Personnel were evacuated from 14 production platforms and rigs, the BSEE said.
Ian is the first hurricane this year to disrupt oil and gas production in the US Gulf of Mexico, which produces about 15 percent of the nation's crude oil and 5 percent of dry natural gas.
Limiting oil prices was the US dollar. The dollar, which typically trades inversely with oil, remained near a 20-year high. Estimates of US oil in storage also sent mixed messages about oil prices.
Amrita Sen, co-founder and director of research at Energy Aspects told CNBC that the drop in prices is a "macro move led by a stronger dollar," which is triggering fears of a recession.
While US crude oil in storage rose by about 4.2 million barrels for the week ended Sept. 23, according to market sources on Tuesday citing figures from industry group the American Petroleum Institute, gasoline inventories fell by about 1 million barrels.
Distillate stocks rose by about 438,000 barrels, according to the sources, who spoke on condition of anonymity. The report comes ahead of official Energy Information Administration data on Wednesday at 4:30 p.m.
(With inputs from Reuters)
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