Oil Prices Rise but Remain Under Pressure Amid Hurricane Disruptions

As of 0719 GMT, oil prices saw a modest increase after Hurricane Francine swept through key production areas in the Gulf of Mexico, leading to the shutdown of 24% of the region’s oil production, which accounts for about 15%-17% of total U.S. output. However, according to Swissquote Bank analyst Ipek Ozkardeskaya, this rise in prices is unlikely to be sustained. “It will take more than a hurricane or even a war in the Middle East to push oil prices higher in the long term,” Ozkardeskaya commented, citing persistent demand concerns and a cautious OPEC. Brent crude rose 1.1% to $71.84 per barrel, while WTI increased by 1.5% to $68.71 per barrel​.

Oil Edges Higher Amid Supply Concerns

At 0031 GMT, oil prices edged up slightly during early Asian trading. Francine is expected to affect six Gulf Coast refineries and ports, prompting oil companies to halt about 412,070 barrels per day of crude production, representing 24% of the Gulf’s total output​.

This supply disruption offset the bearish impact of last week’s Energy Information Administration (EIA) report, which showed rising U.S. crude inventories. Investors are also awaiting the International Energy Agency’s (IEA) monthly report for signs of weakening demand. WTI futures were flat at $67.34 per barrel, while Brent futures increased by 0.1% to $70.70​.