Brent crude was trading flat around $73 on August 31 but for the month it was down nearly 6 percent. However the markets are looking for cues from the OPEC meeting on September 1 as well as aftereffects of hurricane Ida.

In an interview to Manisha Gupta, Vandana Hari of Vanda Insights said preliminary surveys show there has been no damage to the offshore facilities due to hurricane Ida.

"Post hurricane situation in the US Gulf remains in the picture. However there isn't a huge amount of concern with regards to shortages of crude production or of refined fuels. Preliminary surveys have shown that there has been no damage to the offshore facilities, so the expectation right now is that 1.7 million barrels per day will come back gradually."

Also Read: OPEC+ likely to keep oil output policy from September unchanged

She expects OPEC to continue with its plan to put 4,00,000 barrels per day of additional oil into the market every month.

"When OPEC took the decision to put 4,00,000 barrels per day additional oil into the market every month starting in August through next year till all of the cuts are removed, at that time the market reaction was this is too cautious. That idea has changed since the delta wave hit the southern part of the US and there were outbreaks in China. So now the market is wondering whether 4,00,000 barrels per day each month might be too much and OPEC will be asking themselves the same. Overall I think OPEC can stay the course and they probably will."

Also Read: US calls on OPEC and its allies to pump more oil

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