Oil prices were relatively stable on Tuesday as the markets watched for the potential impact of Tropical Storm Beryl on U.S. oil production, while ongoing ceasefire talks between Israel and Hamas remained a focus.
Prices were recovering from steep losses seen on Monday, when a mix of profit-taking and increased speculation over a Gaza ceasefire had triggered outflows from the oil market. Brent oil futures for September delivery hovered around $85.72 per barrel, while West Texas Intermediate (WTI) crude futures steadied at $81.49 per barrel as of 20:40 ET (00:40 GMT).
Tropical storm Beryl disrupts Gulf coast oil operations
Tropical Storm Beryl made landfall in Texas on Monday, knocking out power across a large area of the state and causing disruptions in the state’s oil industry. While the storm had intensified to a Category 1 hurricane as it made landfall, it subsequently weakened to a tropical storm and is expected to continue weakening as it moves up the coast. Nevertheless, a number of oil producers, exporters, and refiners were reported to have suspended operations along the Gulf of Mexico, which could lead to some near-term disruptions in U.S. oil supply. Key export terminals in Texas were expected to be impacted by the storm, although the full extent of the disruption remained unclear. Analysts had initially anticipated that Beryl would have a limited impact on U.S. oil production.
Read more: Oil prices steady amid storm threat and demand concerns
Focus on China’s economic data and trade tensions
Market focus this week was also on a series of economic data releases from China, which were expected to provide more cues on the outlook for the world’s largest oil importer. Chinese trade and inflation readings due through the week were likely to influence the demand outlook. Concerns over a potential trade conflict between China and the West also remained in play, following the European Union’s imposition of steep tariffs on imports of Chinese electric vehicles.
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