Oil prices were broadly stable on Sept. 28 as pressure from a strengthening dollar and crude storage builds was offset by U.S. production cuts caused by Hurricane Ian.
Brent crude futures were up 5 cents, or 0.06%, at $86.32/bbl by 9:37 GMT, while U.S. WTI crude futures were down 9 cents, or 0.1%, at $78.41/bbl. Both contracts erased earlier falls after rising over 2% in the previous session.
In the Gulf of Mexico, about 190,000 bbl/d of oil production, or 11% of the Gulf's total, were shut-in due to Hurricane Ian, according to offshore regulator the Bureau of Safety and Environmental Enforcement (BSEE).
But the dollar hit a fresh two-decade peak against a basket of currencies on Sept. 28 as rising global interest rates fed recession concerns. A strong dollar reduces demand for oil by making it more expensive for buyers using other currencies.
U.S. crude oil stocks rose about 4.2 MMbbl for the week ended Sept. 23, while gasoline inventories fell about 1 MMbbl, according to market sources on Sept. 27, citing figures from industry group the American Petroleum Institute.
Distillate stocks rose by about 438,000 bbl, according to the sources. The report comes ahead of official Energy Information Administration data due 14:30 GMT.
Goldman Sachs cut its 2023 oil price forecast on Sept. 27, due to expectations of weaker demand and a stronger U.S. dollar but said global supply disappointments only reinforced its long-term bullish outlook.
An upcoming price catalyst will be producer group OPEC+'s Oct. 5 meeting at which Russia is likely to propose an output cut of around 1 MMbbl/d, a source familiar with the Russian viewpoint said on Sept. 27.
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