Oil prices decline despite production halts in Gulf of Mexico

Oil prices retreated on Tuesday despite a decline in production in the northern Gulf of Mexico due to Hurricane Sally, and as demand concerns continued to weigh on investor sentiment.

Hurricane Sally stopped the activity of 395,790 barrels per day, or 21.4% of oil production from offshore fields in the northern Gulf of Mexico, in addition to 685 million cubic feet of natural gas per day.

Separately, OPEC lowered its forecast for oil demand in the current year to 90.2 million barrels per day, which represents a decrease of 400,000 barrels per day from its previous estimates.

In terms of trading, the benchmark Brent crude for November delivery fell by 0.3% to $39.50 a barrel, at 8:50 am Makkah time.

US West Texas Intermediate crude for October delivery also fell 0.2% to $ 37.19 a barrel.