Oil Update: Oil down as investors asses Hurricane Irma costs

Oil slid on Tuesday as investors weigh in on the aftermath of Hurricane Irma. Hurricane Irma hit the Floridian state on Monday wiping out electricity to millions of homes and businesses. Analysts expect crude production to go up slightly in the response of demand surge from Irma and Harvey. Both the hurricanes have wreaked havoc on the US soil in the last few weeks; however, Irma has been downgraded to a Tropical Storm.

Crude inventories rose across US after the hurricanes despite a decline in refined products production. U.S. Department of Energy's Energy Information Administration (EIA) estimated, on average, that crude stocks likely rose 2.3 million barrels in the week ended Sept. 8.

On the supply side, Saudi Arabia and other counterparts continue to discuss plans to extend cuts forward from March next year. OPEC and non-OPEC countries in their last meeting agreed to production cuts of around 1.8 million barrels till March next year. Countries argued that cuts and their extensions will help bring re-balance in oil markets, as prices continue to hover around 50$ mark.

International benchmark Brent crude was down 5 cents, or 0.1 percent, at $53.79 per barrel by 0247 GMT from the previous close.

U.S. West Texas Intermediate (WTI) crude was down 4 cents, or 0.1 percent, at $48.03 a barrel.