Stormy Weather: WTI Oil Prices Surge to $1.66 as Hurricanes Disrupt Production
WTI Oil Closes Positive as Hurricane Affects Production
WTI Crude Oil Contracts Rise
- The WTI crude oil contract for October delivery increased by $1.66 or 2.47% to close at $68.97 per barrel.
- The Brent crude oil contract for November delivery rose by $1.36 or 1.93% to close at $71.97 per barrel.
Hurricane Francine Impacts Oil Production
Hurricane Francine made landfall in southern Louisiana on Wednesday evening, affecting New Orleans and the Gulf coast, leading to the evacuation of thousands of people.
The US Federal Office of Safety and Environmental Enforcement (BSEE) reported that oil production of over 730,000 barrels per day, or nearly 42%, in the Gulf of Mexico was suspended on Thursday due to the hurricane.
Analysts’ Predictions
Analysts at UBS predict that the impact of the hurricane will reduce oil production in the Gulf of Mexico by about 50,000 barrels per day this month.
However, some analysts believe the effects of the storm may be short-lived, as it weakened quickly after making landfall in Louisiana on Wednesday evening.
Global Oil Demand Concerns
The US Energy Information Administration (EIA) has cut its 2024 oil demand growth forecast by more than 7% to 900,000 barrels per day, citing weak demand in China and weak economic growth in other regions.
Concerns about weak global oil demand, particularly from China, the world’s largest oil importer, have put pressure on oil prices in recent months.