The world's largest oil exporter's crude output rose to 9.474 million barrels per day in July.
Power outages in the Houston area caused Colonial to pre-emptively shut down its main gasoline and distillate fuel lines, the company said in a notice to shippers after Nicholas made landfall.
Back to trend? While it still expects oil prices to drift upward, Stratas Adivsors is also forecasting that oil prices will trade in a relatively narrow channel through the rest of the year, the firm said in its latest oil price forecast.
The sale comes as oil prices are at a one-week high amid U.S. supply concerns over damage from Hurricane Ida and the ongoing impact from COVID-19.
"The increased risk of COVID-19 cases primarily fueled by the Delta variant is clouding oil demand prospects," OPEC said in its latest report.
Goldman Sachs analysts estimated that Hurricane Ida caused U.S. oil inventories to decline by about 30 million barrels and could push up U.S. refining margins and further widen the price spread between WTI and Brent.
Hurricane Ida has removed more than 20 million barrels of U.S. Gulf production from the market.
OPEC is set to release a report next week with downward revisions of demand outlook due to the spread of the Delta variant.