Oil prices fall as Hurricane Rafael expected to start weakening

Economy

8-11-2024, 11:17

+A -A

INA- sources

Oil prices fell slightly on Friday as the risk that a hurricane in the Gulf of Mexico will significantly affect U.S. oil and gas output declined, while the market weighs how President-elect Donald Trump's policies might affect supplies.
Brent crude oil futures fell 53 cents, or 0.7%, to $75.10 per barrel by 0742 GMT. U.S. West Texas Intermediate (WTI) crude fell 63 cents or 0.9% to $71.74. The benchmarks fell after rising nearly 1% on Thursday.

For the week, Brent is set to gain 3.1% while WTI is set to rise 4.1%

Hurricane Rafael, which has caused 391,214 barrels per day of U.S. crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from U.S. fields while forecast to weaken from Friday and through the weekend, the U.S. National Hurricane Center said.

Prices gained support on Thursday on expected actions by the incoming Trump administration such as tighter sanctions on Iran and Venezuela, which could limit their supply to global markets.

"Our core view sees Trump adopt a relatively pragmatic approach to policy, in which he either chooses not to pursue more radical policy shifts, or is held back by institutional constraints or the influence of more moderate policy advisers," BMI, a unit of Fitch Solutions, said in a note on Friday.
Downward pressure came from data showing crude imports in China, the world's biggest oil importer, fell 9% in October, the sixth consecutive month showing a year-on-year decline, as well as from a rise in U.S. crude inventories.

"The impact (of the Trump administration) on oil market fundamentals in 2025 will likely be somewhat limited," BMI said.

source: Reuters