Oil wavers near $60 as storm Barry hits crude production

Bloomberg

Oil traded close to $60 a barrel after a tropical storm shut almost three-fourths of US Gulf of Mexico crude production amid lingering concerns about demand growth. Futures were little changed on Monday in New York after advancing almost 5 percent last week. About 73 percent of Gulf crude output was offline after explorers evacuated platforms and rigs ahead of Hurricane Barry. With storm now ashore and weakening, drillers have begun restaffing offshore installations.
Meanwhile, Chinese government data indicated the world’s second-largest economy slowed to a three-decade low in the second quarter amid a prolonged trade dispute with the US.
“Near term, the trend is still higher,” Tyler Richey, co-editor at Sevens Report Research in Florida, wrote in a note to clients. “But formidable technical resistance in the mid-$60s and persistent demand concerns due to the trade war will likely prevent prices from making new highs for the year.”
Crude has gained this month thanks to shrinking US stockpiles and rising tensions in the Middle East. The UK and its allies are considering beefing up their military presence in the Persian Gulf to deal with the threat to shipping posed by Iran. Still, there are concerns over the longer term outlook. Opec last week warned of a glut in 2020 while the IEA pointed to a surprise increase in global inventories in this year’s first half.