Oil Futures Drop on Minimal Hurricane Beryl Disruptions
by Bloomberg | Jordan Fitzgerald and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil fell as Hurricane Beryl looked less likely to pose major disruptions to crude infrastructure in Texas.
West Texas Intermediate slid 1% to settle near $82 a barrel after four straight weekly gains. Concerns that Hurricane Beryl would impede oil operations in the Gulf of Mexico and Texas helped drive up futures last week, but weakening product spreads indicate the storm has been less disruptive to infrastructure than expected.
Still, exports may face delays after the Port of Houston and Port of Corpus Christi were shut down — the Port of Houston will remain closed through Tuesday, but the Port of Corpus Christi has reopened. About 85% of Houston has lost power, forcing oil companies to adjust operations.
In addition to Hurricane Beryl, wildfires in Canada have started to threaten output.
Oil touched the highest since late April last week, with money managers increasing their net-long positions on Brent for a fourth week, on expectations for higher demand and lower stockpiles over the summer months. Still, the rally has faced some resistance from signs of weakness in China. The push and pull has limited the number of big moves in prices and sent a gauge of volatility to the lowest level since 2019 on Friday.
Traders are in line for multiple reports this week that will shed light on global crude balances. The Organization of Petroleum Exporting Countries — which has been choking off output to bolster prices — delivers its monthly outlook Wednesday, and the International Energy Agency releases forecasts Thursday. There will be a snapshot from the US Energy Information Administration as well.
Prices:
- WTI for August delivery fell 1% to settle at $82.33 a barrel in New York.
- Brent for September settlement dropped 0.9% to $85.75 a barrel.
by Bloomberg | Jordan Fitzgerald and Alex Longley
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas