Oil prices fall after hurricane hits US

Oil prices fall after hurricane hits US
Oil prices fall after hurricane hits US

Damage was less than expected at an oil hub in Texas, providing relief to markets.

Image: Freepik

The prices of the Petroleum fell on Tuesday after the hurricane that hit a key oil hub in USA in Texas cause less damage than markets had expected, easing concerns about supply disruption.

By mid-morning, Brent futures were down 39 cents, or 0.45%, at $85.36 a barrel, while West Texas Intermediate in the United States (WTI) fell 44 cents, or 0.53 percent, to $81.89.

Although the refining activity of Petroleum slowed down and some production sites were evacuated, the main refineries on the US coast of Gulf of Mexico appeared to suffer minimal impact from Hurricane Beryl, which weakened to a tropical storm after hitting the Texas coast.

“Early indications suggest that most of the energy infrastructure has emerged unscathed,” ING analysts Warren Patterson and Ewa Manthey wrote in a note to clients, adding that price developments in crude and refined fuel markets reflect little concern about a potential supply disruption due to the hurricane.

This eased market concerns about the risk of supply disruption in Texas, where 40% of US crude oil is produced.

Major oil ports in Corpus Christi, Galveston and Houston were shut down ahead of the storm. The Corpus Christi ship channel reopened Monday and the Port of Houston was expected to resume operations later in the day. Several key refineries, including Marathon Petroleum, were also preparing to restart their refining units.

Market players are also keeping an eye on the situation in middle EastCrude oil prices fell 1 percent on Tuesday on hopes that a possible ceasefire deal in Gaza would ease concerns about disruption to global oil supplies.

Source: Ambito

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