Crude values edge higher as Hurricane Ian curbs US Gulf production

Front-month ICE Brent has gained $0.26/bbl in the past day, to $85.86/bbl at 09.00 GMT.

MAP: Hurricane Ian's projected path. National Hurricane Center

Upward pressure:

Russia is likely to propose that OPEC+ reduces oil output by nearly 1 million b/d at its next meeting in October, according to sources cited by Reuters.

Supply curbs in the US Gulf of Mexico ahead of Category 3 Hurricane Ian are helping to prop up Brent. BP and Chevron have suspended output from four offshore platforms in the US Gulf as a precaution ahead of Hurricane Ian, which is forecast to make landfall in Florida today.

Authorities warn that Ian could strengthen into a catastrophic Category 4 hurricane as it nears the southwest coast of Florida. It caused widespread damage and flooding when it crossed western Cuba.

Downward pressure:

Representatives from the International Atomic Energy Agency (IAEA) and Iran have restarted talks. This follows US-Iran negotiations to revive the 2015 nuclear deal hitting a deadlock earlier this month. Rafael Grossi, the head of the global atomic watchdog, announced on Twitter that IAEA talks with Iran have resumed regarding the "clarification of safeguard issues."

The head of the World Trade Organisation (WTO) joins the chorus of concern over a global economic recession. WTO Director-General Ngozi Okonjo-Iweala said she believes we are headed towards a global recession due to multiple concurrent conflicts, but urged policymakers to “start thinking about recovery and measures to restore growth”

A new report released yesterday by the Organization for Economic Co-operation and Development (OECD) warned that global economic growth could slow next year and spark a recession. OECD has downgraded its global economic growth forecast for next year from 2.8% to 2.2% in response to a "subdued" global economic growth in 2022 and decline in 2023.

By Konica Bhatt

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