Ana sayfa » Oil prices fall more than 1% after Beryl’s lighter-than-expected damage

Oil prices fall more than 1% after Beryl’s lighter-than-expected damage

US Gulf Coast appears to have suffered minimal impact following Beryl

by BUNKERIST

Oil prices fell more than 1 percent on Tuesday after traders learned that prolonged supply disruptions were unlikely after the oil-producing hub in Texas suffered less damage than feared.

Brent crude futures fell $1.09 per barrel, or 1.3%, to settle at $84.66 per barrel. WTI lost 92 cents, or 1.1%, to settle at $81.41.

Major refineries on the US Gulf Coast appear to have suffered minimal impact after Beryl strengthened into a tropical storm. Early indications are that most of the energy infrastructure has been completed without damage.

Experts cite diminishing expectations for price action in the crude oil and refined fuel markets due to ongoing supply disruptions due to the hurricane.

Texas accounts for more than 40% of crude oil supplied in the United States, the world’s top producer. However, as we receive more information that the damage is minimal, the concern is fading from the market.

Texas’ major oil shipping ports will reopen Tuesday and some facilities are ramping up production again. Many refineries, such as Marathon Petroleum, are preparing to restart their refining units.

Oil investors also had mixed reactions to comments from Jerome Powell, who said at a Congressional hearing on Tuesday that the economy was no longer overheating and the job market was easing.

Oil prices fell further following statements that the weakening economy could hamper demand for crude oil, even though they signaled that interest rate cuts were imminent.

Market participants are monitoring the situation in the Middle East. Oil prices fell 1 percent on Monday on hopes that a possible ceasefire agreement in Gaza could ease concerns about disruptions to global crude oil supplies.

The White House said senior US officials are in Egypt for talks on Monday, but rifts remain between the two sides and Hamas has said a new Israeli attack on Gaza threatens a potential deal.

Crude futures fell early Tuesday after a second straight session of losses marked a delayed pullback from nine-week highs.