Oil Prices Rise Nearly 2% Amid Concerns Over Hurricane Impact on U.S. Production
On Thursday the International Energy Agency (IEA) cut its 2024 oil demand growth forecast by 70,000 bpd, or about 7.2 per cent, to 900,000 bpd, citing muted Chinese demand
Oil prices rose almost 2 per cent on Thursday, extending a rebound spurred by concern over Hurricane Francine’s impact on US output, though a gloomy demand outlook capped gains.
Brent crude futures for November rose $1.24, or 1.8 per cent, to $71.85 a barrel by 1008 GMT. US crude futures for October were up $1.26, or 1.9 per cent, at $68.57.
Both contracts rose by more than 2 per cent in the previous session as offshore platforms in the US Gulf of Mexico were shut and refinery operations on the coast were disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.
Hurricane Francine has likely disrupted about 1.5 million barrels of US oil production, which we estimate will reduce September production in the Gulf of Mexico by around 50,000 barrels per day (bpd).
