By Katya Golubkova and Emily Chow
(Reuters) -Oil costs rose throughout Asian commerce on Thursday, spurred by issues of Hurricane Francine impacting output within the U.S., the world’s greatest crude producer, although worries of decrease demand capped beneficial properties.
futures for November had been up 40 cents, or 0.6% at $71.01 a barrel at 0330 GMT. futures for October had been up 32 cents, or 0.5%, at $67.63 a barrel.
Each contracts rose by over $1, or greater than 2%, within the earlier session as offshore platforms within the U.S. Gulf of Mexico had been shut and refinery operations on the coast disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.
“Both benchmarks, WTI and Brent, seem to have found some ground amid worries of disrupted U.S. oil supplies,” mentioned Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.
“The region accounts for about 15% of U.S. oil production, with any disruptions in production likely to tighten supplies in the near term.”
However with the storm set to finally dissipate after making landfall, the oil market’s consideration once more turned to decrease demand.
U.S. oil stockpiles rose throughout the board final week as crude imports grew and exports dipped, the Vitality Info Administration mentioned on Wednesday.
The information additionally confirmed gasoline demand fell to its lowest since Might on the similar time distillate gasoline demand dropped, with refinery runs additionally declining. The U.S. is the world’s greatest oil shopper.
Earlier within the week, the Group of the Petroleum Exporting Nations minimize its forecast for international oil demand development in 2024 and in addition trimmed its expectation for subsequent 12 months, its second consecutive downward revision.
“Oil traders are now looking ahead to International Energy Agency’s monthly market report later this week for any signs of a weakening demand outlook,” ANZ Analysis mentioned in a be aware on Thursday.
