SINGAPORE – Oil prices dropped for a second straight session on Monday as U.S. producers began restoring output after Hurricane Delta weakened, while a strike that had affected production in Norway came to an end.

Brent crude LCOc1 for December fell 55 cents, or 1.3%, to $42.30 a barrel by 0023 GMT and U.S. West Texas Intermediate CLc1 for November was at $40.08 a barrel, down 52 cents, or 1.3%.

Front-month prices for both contracts gained more than 9% last week, the biggest weekly rise for Brent since June, but fell on Friday after Norwegian oil firms struck a wage bargain with labour union officials, resolving a strike that threatened to cut the country’s oil and gas output by close to 25%.

HURRICANE DELTA ROILS OIL RIGS, SQUEEZES GASOLINE PRICES

“We had good support for both Brent and West Texas on the back of some supply concerns,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“Given that the hurricane season in the U.S. has just started, there’s potential for that to keep prices firm.”

The Well-Safe Guardian plug and abandonment rig, operated by Well-Safe Solutions Ltd, stands in the Port of Cromarty Firth during sunrise in Cromarty, U.K., on Tuesday, June 23, 2020. Oil headed for a weekly decline — only the second since April —

In the United States, Hurricane Delta, which dealt the greatest blow to U.S. offshore Gulf of Mexico energy production in 15 years, was downgraded to a post-tropical cyclone by Sunday.

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Workers headed back to production platforms on Sunday while Total SA TOTF.PA continued restarting its 225,500 barrel-per-day Port Arthur, Texas, refinery on Sunday.

However, Colonial Pipeline, the largest oil products

(Bloomberg) — Oil explorers, tugboat operators and other U.S. Gulf Coast businesses got back to work on Saturday after the region was slammed by its second hurricane in six weeks.



a train on a steel track: Oil tanker rail cars parked at the Motiva Port Arthur refinery ahead of Hurricane Delta in Port Arthur, Texas, U.S., on Friday, Oct. 9, 2020. Delta churned toward the U.S. Gulf Coast, packing a deadly storm surge and winds strong enough to damage well-built homes as it neared an area of Louisiana still recovering from Hurricane Laura.


© Bloomberg
Oil tanker rail cars parked at the Motiva Port Arthur refinery ahead of Hurricane Delta in Port Arthur, Texas, U.S., on Friday, Oct. 9, 2020. Delta churned toward the U.S. Gulf Coast, packing a deadly storm surge and winds strong enough to damage well-built homes as it neared an area of Louisiana still recovering from Hurricane Laura.

Hundreds of thousands of residents in southwest Louisiana and southeast Texas were without power almost 24 hours after Hurricane Delta roared ashore near the tiny coastal hamlet of Creole, Louisiana, late Friday.

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Bristow Group Inc., which transports offshore crews to and from oil platforms and drilling ships by helicopter, had already returned 50 or 60 workers to various Gulf installations by early afternoon on Saturday. Separately, Royal Dutch Shell Plc said it was redeploying workers and drilling vessels across the region.

The biggest oil refinery in America had several key production units knocked out as Delta raged, according to people familiar with operations who asked not to be identified. A nearby refinery owned by French oil giant Total SE lost power during the height of the storm.

Here’s a list of other post-hurricane developments:

The Houston Ship Channel, one of North America’s busiest commercial waterways, reopened after Hurricane Delta made landfall in Louisiana.Brazos channel at Freeport, Texas, also reopened, as did facilities at Texas City and Galveston.Port Fourchon returned to normal operations.Ports at New Orleans, Baton Rouge and Plaquemines in Louisiana also reopened.Liquefied natural gas tankers that scattered to calmer seas ahead of the storm began resuming journeys to Gulf Coast export terminals, according to data compiled by Bloomberg.Chevron

HOUSTON (Reuters) – Hurricane Delta raked across the Gulf of Mexico, halting most of the region’s offshore oil output on Thursday after energy companies shut-in wells, pulled staff from offshore platforms and began securing coastal processing plants.

The storm was about 370 miles (595 km) south of Cameron, Louisiana, and grinding toward the Louisiana coast at 13 miles per hour (21 km per hour). Its tropical storm-force winds extend up to 125 miles from the storm’s center, the National Hurricane Center said.

Delta is expected to intensify further over the Gulf’s warm waters and become a major hurricane with winds of 115 miles per hour (185 kph) before landfall in southwest Louisiana by Friday evening.

Oil producers withdrew workers from 279 offshore facilities and moved 15 drilling rigs away from Delta’s winds. They have shut 1.69 million barrels per day of oil, or 92% of the region’s offshore oil, and 1.67 billion cubic feet per day, or nearly 62% of its natural gas output.

Energy prices rose on the shut-ins and prospect for a new U.S. economic stimulus. U.S. crude oil futures were up 3% at $41.21, natural gas futures and gasoline futures both rose 2.6%. Natural gas futures reversed course after suffering losses.

“It is going to be a large, powerful storm,” said Weatherbell Analytics meteorologist Joe Bastardi. Delta will land just east of Cameron, Louisiana, an area still suffering the impact of Hurricane Laura’s 150 mph winds.

Total SA

also began shutting a small oil-processing unit at its Port Arthur, Texas, refinery, people familiar with plant operation said. Cameron LNG closed its natural gas processing plant ahead of the storm’s arrival.

Offshore producers including Royal Dutch Shell

, BP

, Chevron

and Occidental Petroleum

have pulled workers from production platforms to quarters onshore.

The unusually high number of

Oil price is on track for the biggest weekly gain since May driven by a Norway strike and Hurricane Delta that has threatened output. Both U.S. crude and Brent are up around 10% this week, marking the first rise in three weeks.

Norway Strike

A strike by oil workers in Norway could cut output from western Europe’s biggest oil and gas producer by almost a quarter by Oct 14 (read: Top & Flop ETF Zones of First Nine Months of 2020).

The dispute began on Sep 30 when wage talks between the Lederne union and the organization representing oil companies collapsed. However, the first production outages began on Oct 5. According to the Norwegian Oil and Gas Association, six offshore oil and gas fields were shut on Oct 5. This has reduced output capacity by 8% or around 330,000 barrels of oil equivalent per day (boepd). U.S. oil major ConocoPhillips (COP) planned shutdown of its Ekofisk 2/4 B platform, with output of 7,000 billion boepd, on Oct 10 if the strike continues. Six more oil and gas fields could fully or partly close by Oct 14, including the Ekofisk platform.

The biggest outage would be at Equinor’s Johan Sverdrup oilfield, the North Sea’s largest oilfield with an output capacity of up to 470,000 barrels of oil per day. Overall, 941,000 boepd are expected to go offline so far. The Norwegian Oil and Gas Association expects the extended strike to cut 25% of production.

Hurricane Delta

The hurricane Delta has forced to shut down nearly 1.5 million barrels per day (bpd) of oil output in Gulf of Mexico. It has halted nearly 90% of the Gulf of Mexico’s crude output.

Saudi Arabia View

Per The Wall Street Journal, Saudi Arabia is considering the cancellation of plans for the Organization of the

HOUSTON (Reuters) – A strengthening Hurricane Delta dealt the greatest blow to U.S. offshore Gulf of Mexico production in 15 years, halting most of the region’s oil and nearly two-thirds of its natural gas output.

An already large and powerful storm, Delta could intensify further on Friday as it churns through the Gulf’s prime oil-producing area. Its winds reached 120 miles per hour (195 kmh), according to the National Hurricane Center.

Delta has shut 1.67 million barrels per day, or 92% of the Gulf’s oil output, the most since 2005 when Hurricane Katrina destroyed more than 100 offshore platforms and hobbled output for months.

Oil prices eased in early trading in Asia on Friday, but were on track for gains of about 10% for the week, boosted by outages in the Gulf of Mexico and a labor dispute in the North Sea. The two combined have removed 3.17 million barrels per day from the market.

Workers had evacuated 279 offshore Gulf of Mexico facilities and producers moved 15 drilling rigs away from Delta’s large and strong windfield. Tropical force winds stretched up to 160 miles from its center, the NHC said, a sign of its large size.

Delta will decrease as it approaches the coast but is expected to remain a Category 3 storm on the 5-step Saffir-Simpson scale. It will bring a 4- to 11-foot (1.2-3.3 meters) storm surge to the coast near landfall, the NHC said.

In addition to oil, producers have halted nearly 62% of the region’s natural gas output, or 1.675 billion cubic feet per day. Offshore Gulf of Mexico fields produce about 15% of U.S. crude oil and 5% of its natural gas production.

Total SA on Thursday began shutting an oil processing unit at its 225,500 barrel-per-day (bpd) Port Arthur, Texas, refinery because of