Oil Prices Jump 1% on Fears Over Hurricane Impact on US Output
Oil prices rose more than 1% on Thursday, extending a rebound spurred by concern over Hurricane Francine's impact on U.S. output, though a gloomy demand outlook capped gains.
Brent crude futures for November rose $1.01, or 1.4%, to $71.62 a barrel by 0805 GMT. U.S. crude futures for October were up $1, or 1.5%, at $68.31.
Both contracts rose by more than 2% in the previous session as offshore platforms in the U.S. Gulf of Mexico were shut and refinery operations on the coast were disrupted by Hurricane Francine's landfall in southern Louisiana on Wednesday.
Nearly 39% of oil and almost half of natural gas production in the U.S. Gulf of Mexico was offline on Wednesday, the offshore regulator said. A total of 171 production platforms and three rigs had been evacuated.
But with the storm set to dissipate after landfall, oil market attention began to turn to lower demand.
U.S. oil stockpiles rose across the board last week as crude imports grew and exports dipped, the Energy Information Administration (EIA) said on Wednesday.
Earlier in the week, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for global oil demand growth this year and trimmed its expectation for 2025, its second consecutive downward revision.
Both oil benchmarks tanked on Tuesday after the downward revision.
Source : Reuters
