2021.08.3010:07:00UTC+00Oil Prices Edge Lower As Hurricane Lashes Louisiana

Oil prices fell on Monday, retreating from more than three-week highs reached earlier in the session, as hurricane Ida weakened to a tropical storm after crashing into Louisiana and knocking out power to more than 1 million homes and businesses including the city of New Orleans.

Benchmark Brent crude futures dropped 0.2 percent to $71.53 a barrel while West Texas Intermediate Crude oil futures were down 0.7 percent at $68.25.

The storm slowed after it made landfall around 1 p.m. ET Sunday near Port Fourchon, delivering catastrophic winds and torrential rains for hours.

The hurricane made landfall as a powerful Category 4 storm, which weakened to a Category 2 storm on Sunday night with maximum winds of 105 miles per hour.

The hurricane was blamed for at least one death. Brent jumped more than 11 percent last week and U.S. oil climbed a little over 10 percent in anticipation of disruptions to oil production from Ida.

Louisiana Offshore Oil Port, the biggest privately owned crude terminal in the United States, halted deliveries before the hurricane.