BusinessOil & Gas/Mining

Oil prices hold steady as concerns over hurricane damage ease

Oil prices edged lower on Monday, reversing course after four weeks of gains, as hopes of a ceasefire deal in Gaza eased worries of tightening supply

Oil prices were little changed on Tuesday after a hurricane that hit a key U.S. oil-producing hub in Texas caused less damage than markets had expected, easing concerns over supply disruption.

Brent futures rose 4 cents to US$85.79 a barrel by 0622 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 2 cents to US$82.35.

Although oil refining activity slowed and some production sites were evacuated, major refineries along the U.S. Gulf Coast appeared to see minimal impact from Hurricane Beryl, which weakened into a tropical storm after hitting the Texas coast.

“Early indications suggest that most energy infrastructure has come through unscathed,” said ING analysts Warren Patterson and Ewa Manthey in a client note, adding that price action in crude oil and refined fuel markets reflect little concern on supply disruption from the hurricane.

That eased market worries about the risk of supply disruption in Texas, where 40% of U.S. crude oil is produced.
Major oil-shipping ports around Corpus Christi, Galveston and Houston had been shut ahead of the storm. The Corpus Christi Ship Channel reopened on Monday and the Port of Houston was projected to resume operations on Tuesday afternoon.

Several key refiners such as Marathon Petroleum were also preparing to restart their refining units.

Market participants are also keeping an eye on the situation in the Middle East for more trading cues. Oil prices settled down 1% on Monday amid hopes a possible ceasefire deal in Gaza could reduce worries about global crude supply disruption.

Senior U.S. officials were in Egypt for talks on Monday, but gaps remained between the two sides, the White House said, and Hamas said a new Israeli push into Gaza threatened the potential agreement.

Oil prices edged lower on Monday, reversing course after four weeks of gains, as hopes of a ceasefire deal in Gaza eased worries of tightening supply.

 

Markets were also waiting for the release of key U.S. inflation data, with Federal Reserve Chair Powell set to appear before Congress on Tuesday and Wednesday, as investors wagered a slew of soft labour market data has greatly increased the chance of an interest rate cut in September to about 80%.

“With a recent run in U.S. economic data raising bets for a September rate cut, any validation from upcoming inflation progress may help to support the broader risk environment, which may offer some room for oil prices to stabilise on a more favourable demand outlook,” IG market strategist Yeap Jun Rong said in an email.

 

Asaase Broadcasting Company airs on Asaase 99.5 Accra, Asaase 98.5 Kumasi, Asaase 99.7 Tamale, Asaase 100.3 Cape Coast, AsaasePa 107.3 (Accra).
Affiliates: Azay FM 89.1 (Takoradi), Bawku FM 101.5, Bead FM 99.9 (Bimbilla), Mining City Radio 89.5 (Tarkwa), Nyatefe Radio 94.5 (Dzodze), Somuaa FM 89.9 (Gushegu), Stone City 90.7 (Ho) and Wale FM 106.9 (Walewale).

Listen online: 
asaaseradio.com, Sound Garden and TuneIn.
Follow us:
X
@asaaseradio995@Asaase985ksi@Asaase997tamale@asaase1003asaasepa1073
Instagram
asaaseradio99.5asaase985ksiasaase100.3asaase99.7tamaleasaasepa107.3
LinkedIn
company/asaaseradio995TikTok@asaaseradio99.5, Facebookasaase99.5asaase985ksiAsaase100.3asaase99.7AsaasePa107.3.
YouTube
AsaaseXtra.
Join the conversation. Accra: call 020 000 9951/054 888 8995, WhatsApp 020 000 0995. Kumasi: call 059 415 7985 or call/WhatsApp 020 631 5260. Tamale: call/WhatsApp/SMS 053 554 6468. Cape Coast: call/WhatsApp 059 388 2652.

#AsaaseRadio

Source
Reuters
Show More

Related Articles

Back to top button

Adblock Detected

ALLOW OUR ADS