U.S. oil futures settle at a nearly one-month low amid temporary U.S. production, supply declines

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Oil futures fell sharply on Wednesday, with U.S. prices settling at their lowest in nearly a month, following declines in U.S. crude supply and production that some traders see as merely a temporary setback in the wake of Hurricane Laura. Production in the Gulf of Mexico region continues to recover following the hurricane, which made landfall on the Gulf Coast early Thursday, with around 20% of Gulf oil production shut in as of Wednesday, according to the Bureau of Safety and Environmental Enforcement, down from a peak of around 84%. Strength in the U.S. dollar also pressured prices for oil. West Texas Intermediate oil fell $1.25, or 2.9%, to settle at $41.51 a barrel on the New York Mercantile Exchange. That was the lowest front-month contract finish since Aug. 7, FactSet data show.
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