Oil prices slip as concerns over hurricane damage ease
Send a link to a friend
[July 09, 2024] By
Noah Browning
(Reuters) - Oil prices slipped on Tuesday after a hurricane that hit a
key U.S. oil-producing hub in Texas caused less damage than markets had
expected, easing concerns over supply disruption.
Brent futures fell 39 cents or 0.45% to $85.36 a barrel by 1111 GMT,
while U.S. West Texas Intermediate (WTI) crude slipped 44 cents or 0.53%
to $81.89.
Although oil refining activity slowed and some production sites were
evacuated, major refineries along the U.S. Gulf Coast appeared to see
minimal impact from Hurricane Beryl, which weakened into a tropical
storm after hitting the Texas coast.
"Early indications suggest that most energy infrastructure has come
through unscathed," ING analysts Warren Patterson and Ewa Manthey wrote
in a client note, adding that price action in crude oil and refined fuel
markets reflect little concern on supply disruption from the hurricane.
That eased market worries about the risk of supply disruption in Texas,
where 40% of U.S. crude oil is produced.
![](http://archives.lincolndailynews.com/2024/Jul/09/images/ads/current/napa_sda_HEROES_2024.png)
Major oil-shipping ports around Corpus Christi, Galveston and Houston
had been shut ahead of the storm. The Corpus Christi Ship Channel
reopened on Monday and the Port of Houston was projected to resume
operations on Tuesday afternoon.
Several key refiners such as Marathon Petroleum were also preparing to
restart their refining units. [REF/OUT]
Market participants are also keeping an eye on the situation in the
Middle East for more trading cues. Oil prices settled down 1% on Monday
amid hopes a possible ceasefire deal in Gaza could reduce worries about
global crude supply disruption.
[to top of second column] |
![](../images/070924PIX/busine74.jpg)
An oil and gas industry worker walks during operations of a drilling
rig at Zhetybay field in the Mangystau region, Kazakhstan, November
13, 2023. REUTERS/Turar Kazangapov/File Photo
![](http://archives.lincolndailynews.com/2024/Jul/09/images/ads/current/guzzardos_lda_GENERIC_040524.png)
Senior U.S. officials were in Egypt for talks on Monday, but gaps
remained between the two sides, the White House said, and Hamas said
a new Israeli push into Gaza threatened the potential agreement.
"Crude futures were inching lower early Tuesday after a second
consecutive session of losses suggested an overdue pullback from (a)
nine-week high," said Vandana Hari, founder of oil market analysis
provider Vanda Insights.
Markets were also waiting for the release of key U.S. inflation
data, with Federal Reserve Chair Powell set to appear before
Congress on Tuesday and Wednesday, as investors wagered a slew of
soft labour market data has greatly increased the chance of an
interest rate cut in September to about 80%.
The "market will find a sympathetic bid if Powell's comments are
indeed friendly to a rate cut and if the U.S. CPI backs such
language with a lower reading," said John Evans, analyst at oil
broker PVM.
(Additional reporting by Arunima Kumar, Colleen Howe and Trixie Yap;
editing by Sherry Jacob-Phillips and Jason Neely)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
![](http://archives.lincolndailynews.com/2024/Jul/09/images/ads/current/ldn_booksda_CHASSKAREN_010924.png) |