Oil prices rise, set for positive week amid rebound from 3-year lows

Investing.com
Updated
Mitrade
coverImg
Source: DepositPhotos

Investing.com-- Oil prices rose in Asian trade on Friday and were set for a positive close to the week as concerns over supply disruptions stemming from Hurricane Francine helped crude rebound from near three-year lows. 


But crude prices were still nursing steep losses from last week, and were trading only marginally above this week’s lows, as persistent concerns over slowing demand stemmed crude’s advance. 


Brent oil futures expiring in November rose 0.6% to $72.43 a barrel, while West Texas Intermediate crude futures rose 0.7% to $68.60 a barrel by 21:23 ET (01:23 GMT). 


Both contracts were up 1% and 2.4% this week, respectively. 


Hurricane Francine disrupts Gulf of Mexico production


Oil production and refinery activities in the Gulf of Mexico were battered by Hurricane Francine as it made landfall in Louisiana earlier this week, although it was later downgraded to a tropical storm. 


A slew of offshore platforms in the storm’s path were evacuated through the week, while operations in crude and natural gas shipping terminals were also suspended. 


The Gulf of Mexico accounts for nearly a quarter of all U.S. oil production, with any extended production halts heralding tighter supplies in the country. 


Oil markets grapple with demand concerns 


But despite some positive momentum this week, oil prices were still trading close to three-year lows amid persistent concerns over slowing demand.


Weak economic signals from China were a key driver of these concerns, as traders positioned for potentially weaker demand in the world’s biggest oil importer.


Both the Organization of Petroleum Exporting Countries and the International Energy Agency slashed their oil demand forecasts for 2024 in separate reports released earlier in the week, citing concerns over China.


But they also said demand would come from other sources in Asia, especially India, as the country sees outsized economic growth.


In the U.S., data showing a large build in gasoline and distillate inventories pushed up concerns that fuel demand in the country was slowing with the end of the travel-heavy summer season. 

 

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
WTI softens below $71.00, ongoing geopolitical tensions might cap its downsideWest Texas Intermediate (WTI), the US crude Oil benchmark, is trading around $70.80 on Friday.
Author  FXStreet
Sep 20, Fri
West Texas Intermediate (WTI), the US crude Oil benchmark, is trading around $70.80 on Friday.
placeholder
Oil prices rise with Hurricane Francine impact, demand jitters in focusInvesting.com-- Oil prices rose in Asian trade on Thursday as expectations of supply disruptions in the wake of Hurricane Francine helped offset persistent concerns over slowing global crude demand.
Author  Investing.com
Sep 12, Thu
Investing.com-- Oil prices rose in Asian trade on Thursday as expectations of supply disruptions in the wake of Hurricane Francine helped offset persistent concerns over slowing global crude demand.
placeholder
Equities and oil divergence to continue for a whileInvesting.com -- Recent developments in financial markets suggest that the longstanding relationship between equities and oil prices has unraveled, with this divergence expected to continue in the foreseeable future.
Author  Investing.com
Sep 11, Wed
Investing.com -- Recent developments in financial markets suggest that the longstanding relationship between equities and oil prices has unraveled, with this divergence expected to continue in the foreseeable future.
placeholder
WTI appreciates to near $68.00 due to a potential hurricane approaching US Gulf CoastWest Texas Intermediate (WTI) Oil price recovers its recent losses registered in the previous session, trading around $68.00 per barrel during Monday’s Asian hours.
Author  FXStreet
Sep 09, Mon
West Texas Intermediate (WTI) Oil price recovers its recent losses registered in the previous session, trading around $68.00 per barrel during Monday’s Asian hours.
placeholder
WTI hovers around $68.50 close to nine-month lowsWest Texas Intermediate (WTI) Oil price trades around $68.60 during the Asian hours on Friday, hovering around 68.37 lowest since December 2023, which was recorded on Thursday.
Author  FXStreet
Sep 06, Fri
West Texas Intermediate (WTI) Oil price trades around $68.60 during the Asian hours on Friday, hovering around 68.37 lowest since December 2023, which was recorded on Thursday.