Oil prices in Asian trade surged as Hurricane Francine caused supply disruptions, countering concerns of slowing global crude demand.
Hurricane Francine hit Louisiana after affecting the Gulf of Mexico, leading to oil firms limiting or suspending operations in its path.
Crude rebounded from near three-year lows due to expectations of tighter supplies, although the rally seemed to be losing momentum.
Brent crude futures rose 0.3% to $70.83 a barrel, while WTI futures rose 0.3% to $66.78 a barrel.
US Inventories Grow Less Than Expected, Fuel Stockpiles Surge
Government data showed a larger-than-expected increase in crude and fuel stockpiles, raising concerns about cooling U.S. fuel demand post-summer season.
Weakening U.S. economy fears impacted oil prices, with stronger economic data hinting at a smaller interest rate cut by the Federal Reserve in September.
IEA Report Awaited After OPEC Cuts Demand Forecast
Focus shifts to the upcoming IEA monthly report for more insights on a weaker demand outlook, following OPEC’s reduced oil demand growth forecast.
China’s weak economic data added to oil market anxiety, with analysts attributing August’s oil import rebound to lower prices rather than increased demand.
Overall, oil prices rose due to supply disruptions caused by Hurricane Francine, but concerns linger regarding global crude demand and economic uncertainties in major oil-consuming countries like China.
This volatile environment requires investors to stay vigilant and adapt their investment strategies accordingly to navigate the ever-changing landscape of the oil market.