Friday is marked by caution in oil markets as traders followed the way of a tropical storm moving in the direction of the Gulf of Mexico and as China had a week off for a public holiday.
Though measures to reduce oil output taken by the Organization of the Petroleum Exporting Countries and some non-OPEC states, including Russia, were helpful in propping up prices.
U.S. WTI crude lost 3 cents and costs $50.76 a barrel this morning, while Brent crude – $56.96 per barrel, that is 4 cents down.
Activity eased up because of China’s Golden Week holiday, and traders looking closely at the situation with the storm Nate, which made producers and refineries in the South-East of the US close in the wake of the hurricanes that battered the area some weeks ago.
The probable hit of the storm makes traders close positions as open trades left for the weekend are very much undesirable.
The Louisiana Offshore Oil Port is among the chief facilities dealing with fuel in the region, and it reported today of putting on hold any unloading of ships.