Oil futures traded higher Tuesday, bouncing back from a broad selloff suffered in the previous session attributed to jitters around troubled Chinese property giant Evergrande.
West Texas Intermediate crude for October delivery
CLV21,
rose 79 cents, or 1.1%, to $71.08 a barrel on the New York Mercantile Exchange. November WTI
CL00,
CLX21,
the most actively traded contract, was up 80 cents, or 1.1%, at $70.94 a barrel.
November Brent crude
BRN00,
BRNX21,
the global benchmark, gained 72 cents, or 1%, to $74.64 a barrel on ICE Futures Europe.
Oil, along with a range of other commodities, equities and other assets perceived as risky, sold off Monday, a move tied in large part to worries surrounding a potential default by Evergrande.
Read: Commodities, including iron ore and copper, take a hit on potential collapse of China’s Evergrande
Meanwhile, data shows U.S. oil output in the Gulf of Mexico continues to recover slowly from Hurricane Ida, which hit the Louisiana coast on Aug. 29. The Bureau of Safety and Environmental Enforcement late Monday said more than 18% of production in the Gulf remained shut in, equal to 331,078 barrels a day of output.
“A fair amount of this production is set to remain offline until early next year,” said Warren Patterson, head of commodities strategy at ING, in a note.
Royal Dutch Shell
RDS.A,
RDS.B,
the Gulf’s largest producer, on Monday said damage to its WD-143 transfer facility won’t be fully repaired until the first quarter of next year.
This post was originally published on Market Watch
