Oil edges higher as producers assess Hurricane Ida damage

While Gulf of Mexico oil producers had shut in about 1.7 million barrels a day of crude output ahead of the storm, refineries in the US state of Louisiana may be slower to resume operations.

Oil edged higher in New York as offshore explorers assess damage from Hurricane Ida and as investors shift focus to an OPEC+ meeting that could see more supply added to the market. Futures in New York were trading just over $69 a barrel after falling as much as 1.6% earlier. While Gulf of Mexico producers had shut in about 1.7 million barrels a day of crude output ahead of the storm, refineries in Louisiana may be slower to bring back operations. “The market is regarding the impact on crude production as minimal at this point from Ida unlike refining,” said Bart Melek, head of global commodity strategy at TD Securities. “This means less demand for feed as refiners have a reduced capacity, which could see crude scarcity worries go away.”