Both contracts rose more than 2%, in the previous session as offshore platforms in the US Gulf of Mexico were shut
12 September 2024 - 08:12
byKatya Golubkova and Emily Chow
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Tokyo/Singapore — Oil prices rose during Asian trade on Thursday, spurred by concerns of Hurricane Francine affecting output in the US, the world’s biggest crude producer, though worries of lower demand capped gains.
Brent crude futures for November were up 40c, or 0.6% at $71.01 a barrel at 3.30am GMT. US crude futures for October were up 32c, or 0.5%, at $67.63 a barrel.
Both contracts rose by over $1, or more than 2%, in the previous session as offshore platforms in the US Gulf of Mexico were shut and refinery operations on the coast disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.
“Both benchmarks, WTI and Brent, seem to have found some ground amid worries of disrupted US oil supplies,” said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.
“The region accounts for about 15% of US oil production, with any disruptions in production likely to tighten supplies in the near term.”
But with the storm set to eventually dissipate after making landfall, the oil market’s attention again turned to lower demand.
US oil stockpiles rose across the board last week as crude imports grew and exports dipped, the US Energy Information Administration said on Wednesday.
The data also showed petrol demand fell to its lowest since May at the same time distillate fuel demand dropped, with refinery runs also declining. The US is the world’s biggest oil consumer.
Earlier in the week, oil cartel Opec cut its forecast for global oil demand growth in 2024 and also trimmed its expectation for 2025, its second consecutive downward revision.
“Oil traders are now looking ahead to International Energy Agency’s monthly market report later this week for any signs of a weakening demand outlook,” ANZ Research said in a note on Thursday.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hurricane Francine blows oil prices up
Both contracts rose more than 2%, in the previous session as offshore platforms in the US Gulf of Mexico were shut
Tokyo/Singapore — Oil prices rose during Asian trade on Thursday, spurred by concerns of Hurricane Francine affecting output in the US, the world’s biggest crude producer, though worries of lower demand capped gains.
Brent crude futures for November were up 40c, or 0.6% at $71.01 a barrel at 3.30am GMT. US crude futures for October were up 32c, or 0.5%, at $67.63 a barrel.
Both contracts rose by over $1, or more than 2%, in the previous session as offshore platforms in the US Gulf of Mexico were shut and refinery operations on the coast disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.
“Both benchmarks, WTI and Brent, seem to have found some ground amid worries of disrupted US oil supplies,” said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.
“The region accounts for about 15% of US oil production, with any disruptions in production likely to tighten supplies in the near term.”
But with the storm set to eventually dissipate after making landfall, the oil market’s attention again turned to lower demand.
US oil stockpiles rose across the board last week as crude imports grew and exports dipped, the US Energy Information Administration said on Wednesday.
The data also showed petrol demand fell to its lowest since May at the same time distillate fuel demand dropped, with refinery runs also declining. The US is the world’s biggest oil consumer.
Earlier in the week, oil cartel Opec cut its forecast for global oil demand growth in 2024 and also trimmed its expectation for 2025, its second consecutive downward revision.
“Oil traders are now looking ahead to International Energy Agency’s monthly market report later this week for any signs of a weakening demand outlook,” ANZ Research said in a note on Thursday.
Reuters
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