Oil Mostly Flat As Gulf of Mexico Production Resumes

Oil prices eased early on Tuesday as Gulf of Mexico platforms idled by the approach of then-Tropical Storm Barry began resuming production.

West Texas Intermediate crude for August delivery was last seen down US$0.02 to US$66,45 per barrel while front-month Brent was down US$0.03 to US$66.45.

The first named storm of the season forced the suspension of more than two-thirds of oil output from the Gulf of Mexico, but with the storm past and dissipated over Louisiana, workers were returned to the evacuated platforms.

The pause in market volatility comes ahead of new U.S. inventory reports, with the American Petroleum Institute releasing its weekly survey of private stocks later on Tuesday, followed by the Wednesday morning report from the U.S Energy Administration.

“A stronger dollar, along with the return of Gulf of Mexico oil production following Hurricane Barry’s passage have capped prices so far today,” Action Economics said in a note. “Traders will look to the weekly API inventory report after the close today for directional cues.”