Oil rebounds from week of heavy losses as storm approaches US Gulf Coast

By Robert Harvey

LONDON (Reuters) -Oil futures jumped by about 1% on Monday as a potential hurricane approaching the U.S. Gulf Coast helped oil prices to recover some of the previous week's heavy losses.

Brent crude rose 67 cents, or 0.94%, to $71.73 a barrel by 0901 GMT while West Texas Intermediate crude futures were up 68 cents, or 1%, at $68.35.

Prices of Brent crude had fallen in each of the past six trading sessions, retreating by more than 11%, or nearly $9 a barrel, to register the lowest closing price since December 2021 on Friday.

Analysts said Monday's rebound was partly in response to a potential hurricane near the U.S. Gulf Coast.

A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said on Sunday. The U.S. Gulf Coast accounts for about 60% of U.S. refining capacity.

"A small recovery in prices is under way this morning, inspired by hurricane warnings that might threaten the U.S. Gulf Coast, but the wider conversation remains on where demand will come from and what OPEC+ can do," said PVM analyst John Evans.

The OPEC+ oil producer group last week agreed to delay a planned output increase of 180,000 barrels per day for October by two months in reaction to tumbling crude prices

Trading houses Gunvor and Trafigura expect oil prices to range between $60 and $70 a barrel because of sluggish Chinese demand and persistent oversupply, executives told the APPEC conference in Singapore on Monday.

Meanwhile, Morgan Stanley cut its Brent price forecast for the fourth quarter to $75 a barrel from $80, adding that prices are likely to remain around that level unless demand weakens further.

The weakness in China is driven by economic slowdown and inventory destocking, Jeff Currie, of U.S. investment company Carlyle Group (NASDAQ:CG ), told APPEC.

Refining margins in Asia have slipped to their lowest seasonal levels since 2020.



A U.S. jobs report on Friday showed that August non-farm payrolls increased by less than market watchers had expected.

A decline in the jobless rate could slow the pace at which the Federal Reserve cuts interest rates, analysts said. Lower interest rates typically increase oil demand by spurring economic growth.

Source: Investing.com

Последние публикации
ME conflict remains at risk of escalation, oil and gold can help hedge risk
24.11.2024 - 11:00
Factbox-Takeaways from the COP29 climate summit in Azerbaijan
24.11.2024 - 04:00
Trump picks Brooke Rollins to be agriculture secretary
23.11.2024 - 23:00
Canada's Trudeau condemns violent protests as NATO meets in Montreal
23.11.2024 - 21:00
Trump expected to pick Brooke Rollins to be agriculture secretary, WSJ reports
23.11.2024 - 19:00
Citi simulates an increase of global oil prices to $120/bbl. Here's what happens
23.11.2024 - 12:00
Natural gas prices outlook for 2025
23.11.2024 - 11:00
Russia's claim of emissions in annexed Ukraine regions draws protests at COP29
23.11.2024 - 06:00
Oil prices settle up 1% at 2-week high as Ukraine war intensifies
22.11.2024 - 22:00
COP29 climate summit overruns as $250 billion draft deal stalls
22.11.2024 - 21:00
Oil prices climb 1% to two-week high as Ukraine war intensifies
22.11.2024 - 20:00
Oil prices edge up to 2-week high as Ukraine war intensifies
22.11.2024 - 19:00
COP29 climate summit overruns as $250 billion draft deal flops
22.11.2024 - 17:00
Indian opposition parties deny any wrongdoing linked to Adani bribery allegations
22.11.2024 - 17:00
Oil prices head for weekly gain on Russia-Ukraine tensions
22.11.2024 - 16:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?