Oil prices climbed on Thursday amid concerns that Hurricane Francine could disrupt production in the U.S., the leading crude producer globally. However, fears of reduced demand limited the increase.
As of 03:30 GMT, Brent crude futures for November rose by 40 cents, or 0.6 percent, reaching $71.01 per barrel. Meanwhile, U.S. crude futures (WTI) for October increased by 32 cents, or 0.5 percent, to $67.63 per barrel.
Both contracts had surged by over $1, exceeding 2 percent, during the previous session, driven by the shutdown of offshore platforms in the U.S. Gulf of Mexico and disruptions to refinery operations along the coast due to Hurricane Francine making landfall in southern Louisiana on Wednesday.
With the storm expected to weaken after landfall, the focus of the oil market shifted back to concerns about demand.
According to the Energy Information Administration’s report on Wednesday, U.S. oil inventories increased across the board last week, attributed to rising crude imports and falling exports. The data also indicated that gasoline demand hit its lowest level since May, while distillate fuel demand decreased, alongside a drop in refinery operations. The U.S. remains the largest oil consumer in the world.
Earlier this week, the Organization of the Petroleum Exporting Countries (OPEC) revised its forecast for global oil demand growth in 2024 downward, marking the second consecutive cut in expectations for the coming year.
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