On Thursday, oil prices rose more than 1% on concerns about Hurricane Francine affecting production in the United States, the world’s largest crude producer, but low demand concerns capped gains.
November Brent crude futures rose $1, or 1.4%, to $71.61 a barrel by 0632 GMT. October WTI futures rose 92 cents, or 1.4%, to $68.23 a barrel.
Both contracts rose more than 2% in the previous session as offshore platforms in the U.S. Gulf Coast were shut and onshore refining operations were disrupted by Hurricane Francine, which reached southern Louisiana on Wednesday.
WTI and Brent appeared to have regained some ground amid concerns about disrupted U.S. oil supplies. The region accounts for about 15% of U.S. oil production, and any disruptions to production are likely to tighten supply in the near term.
But as the storm dissipates after landfall, the oil market’s focus has returned to lower demand.
Regarding the Energy Information Administration (EIA) on Wednesday,
U.S. oil inventories have generally increased over the past week as crude imports rose and exports fell.
Data from the U.S., the world’s largest oil consumer, also showed gasoline demand fell to its lowest level since May, while distillate demand also fell and refinery activity slowed.
Despite concerns about Hurricane Francine affecting supply, the medium-term trend remains bearish for WTI crude. Concerns about weak demand from China and fears of growth in the U.S. support this.
Earlier in the week, OPEC lowered its forecast for global oil demand growth in 2024 and also lowered its outlook for next year. This was the second consecutive downward revision.
Oil traders will be looking at the International Energy Agency’s (IEA) monthly market report this weekend for any signs
