Oil prices resumed their ascent on Friday, August 27, with Brent gaining 1.6%, again rising above $71/bbl and closing at $71.51/bbl, while WTI advanced 1.46% to a new local high of $68.53/bbl.
The main reason behind the uptrend in oil prices was Hurricane Ida, as a result of which 91% of oil production in the Gulf of Mexico was halted at the end of last week. In total, US oil output decreased by over 1.65 mbpd due to the hurricane.
Oil reverted to a downward correction today on the back of media reports that OPEC+ at its meeting on September 1 may revise its previously approved production quotas. By the time of writing, Brent was down 0.18%, and WTI was off 0.6%. Our Brent price forecast for today is in the range of $71-72/bbl.