Oil prices fell nearly 1 percent on Monday to a one-week low as Hurricane Beryl closed U.S. refineries and ports in the Gulf of Mexico and hopes a possible ceasefire agreement in Gaza could ease concerns about disruptions to global crude oil supplies.
Brent futures fell 79 cents, or 0.9%, to settle at $85.75 a barrel, while WTI crude fell 83 cents, or 1.0%, to settle at $82.33.
Hurricane Beryl moved inland and hit Texas, the state that produces the most oil and natural gas among the US states. Oil ports were closed, hundreds of flights were canceled and more than 2.7 million homes and businesses were left without power.
In the Middle East, Gaza ceasefire talks continue under the mediation of Qatar and Egypt. While progress appears to be being made in ongoing negotiations, Oil is starting the week under significant downward price pressure driven by optimism about a ceasefire in Gaza.
Investors were watching how the elections held in England, France, and Iran last week would affect geopolitics and energy policies.
The French left has said it wants to run the government but conceded that talks will be difficult and time-consuming after Sunday’s elections thwarted the far-right’s bid for power and parliament was suspended.
In the US, President Joe Biden said he will not give up his re-election campaign as he tries to prevent a possible rebellion by Democrats who worry that the party may lose the White House and Congress in the November 5 US elections.
Crude oil imports in Asia decreased in the first half of 2024 compared to the same period last year due to the decrease in crude oil coming to China, the world’s largest oil importer.
Fuel consumption in India, the world’s third-largest oil consumer, increased by 2.6% annually to 19.99 million metric tons in June. Exports in Germany fell more than expected in May due to weak demand from China, the USA and European countries.
In Kazakhstan, the energy ministry said it would compensate for the oil production that exceeded the OPEC+ quota in the first half of this year by September 2025.
OPEC+ allies together extended most oil production cuts through 2025.
These production cuts led analysts to predict a supply shortfall in the third quarter as summer transportation and air conditioning demand depleted fuel stocks.
