August 25, 2021

Mexican Oil Rig Fire Among The Causes Of High Prices

 Black commodities traded steady in Wednesday’s trading session after industry reports showed a reduction in U.S. crude oil and fuel supplies, adding a positive factor for a market still struggling with a coronavirus resurgence.

During the Asian session, Brent crude futures traded at $ 70 a barrel, while US WTI traded at $ 67.17 a barrel.

Both benchmarks have risen around 8% in the previous two days, erasing most of the losses from the declines recorded last week.

The American Petroleum Institute (API) reported a drop of 1.6 million barrels in crude oil supplies last week, while gasoline stocks also dropped around 985,000 barrels.

In addition, prices also rose following supply constraints from Mexico which experienced major production disruptions due to fires at oil rigs in the southern Gulf of Mexico.

The fire broke out while crews were performing maintenance on the platform, killing five workers and injuring six. About a quarter of Mexico's oil production was affected by the fire.