Oil Higher on Lower Inventory Expectations Despite Less Supply Disruption Risks

Oil prices steadied on Tuesday as a resumption of production in the Gulf of Mexico after Hurricane Barry and a boom in U.S. supply from shale oil countered tensions in the Middle East.

ncertainty about China’s economic prospects also pressured prices after data on Monday showed that growth in the country slowed to 6.2% from a year earlier, the weakest pace in at least 27 years.

Brent crude futures LCOc1 were down 16 cents at $66.32 a barrel by 1150 GMT, after hitting a session high of $66.84.

West Texas Intermediate crude futures CLc1 fell by 8 cents to $59.50 a barrel. The U.S. benchmark hit a session high of $59.87 earlier in the day.

U.S. oil companies on Monday began restoring some of the nearly 74% of production that was shut at platforms in the Gulf of Mexico because of Hurricane Barry.

via Reuters

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