Oil drops as Hurricane Ida weakens, OPEC in focus

Brent Crude was trading 0.17% up at  $71.82.

Oil prices dropped from a four-week high on Monday as Hurricane Ida weakened after forcing precautionary shutdowns of U.S. Gulf oil production, and attention turned to an OPEC meeting on Wednesday to discuss a further output boost.

Within 12 hours of coming ashore, the storm had weakened into a Category 1 hurricane. Nearly all offshore Gulf oil production, or 1.74 million barrels per day, was suspended in advance of the storm.

Brent Crude was down 21 cents or 0.3% at $72.49 by 1020 GMT, having reached $73.69 earlier, the highest since Aug. 2. U.S Crude fell 50 cents or 0.7% to $68.24, having earlier touched $69.64, the highest since Aug. 6.

“Hurricane Ida will dictate oil’s near-term direction,” said Jeffrey Halley, senior market analyst at OANDA. “If Ida weakens and its path of destruction is lower than expected, oil’s rally will temporarily lose momentum here.”

While crude fell on anticipation of a quick supply recovery, U.S. gasoline was up almost 3% as power outages added to refinery closures on the Gulf coast and traders weighed the possibility of prolonged disruptions.

Brent Crude , RSI Stood at 51.139, the current price is trading  Above  the Moving Averages 5 & 20. So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent Crude– Buy: 71.80, TARGET:-81.80, STOP LOSS:- 66.80.

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