After perking up the day before, on Tuesday, the prices of the global crude slumped on Wednesday. The slump coincided with the International Monetary Fund reducing its estimates of global growth for 2018 and 2019. Likewise, the partial closure of oil production operations by companies carrying these out in the Gulf of Mexico on Tuesday because of Hurricane Michael also contributed to the reduction of prices of crude.
The Brent crude was priced at $84.79 per barrel which came to a drop of about 22 cents in its previous day's cost. Meanwhile, the American crude was priced at around $74.62 which came to a reduction of about 34 cents from its cost on Tuesday.
Furthermore, it was reported by Reuters that workmen in about 75 oil platforms had to be evacuated as a precaution against the hurricane making a landfall in the Florida Panhandle, at the centre of the Gulf of Mexico. The loss in the production for the day came to around 670,000 barrels of crude and over 700 million cubic feet of natural gas.
Singapore-based OANDA's trading head Stephen Innes was quoted by the Reuters as saying, "Prices are peaking at the most opportunistic time given waning global growth narrative." Innes, then, also added, "There seems to more positive supply chatter in the equation this week, and even although we know its maintenance season the markets are so long positioned that we could see an outsized move on a big build."