Oil Prices Soar as Gulf Storm Threatens Amid Market Recovery
Oil prices experienced a rebound as a potential hurricane approaches the U.S. Gulf Coast. West Texas Intermediate (WTI) crude futures rose by 1.48% to $68.67 per barrel, and Brent crude futures increased by 1.39% to $72.05 per barrel. This follows a period of declining prices due to weaker-than-expected U.K. jobs data and broader concerns about global demand, particularly from the U.S. and China.
The U.N. National Hurricane Center reported that a weather system in the Gulf of Mexico is expected to strengthen into a hurricane before impacting the northwestern U.S. Gulf Coast. This region accounts for a significant portion of U.S. refining capacity, which has contributed to the price rise. Despite this, concerns about sluggish demand continue to limit further increases in oil prices.
The OPEC+ oil producer group has delayed a planned output increase of 180,000 barrels per day by two months in response to falling crude prices. Analysts from trading houses Gunvor and Trafigura expect oil prices to range between $60 and $70 per barrel due to oversupply and weak demand from major economies like China. Additionally, Morgan Stanley has cut its Brent price forecast for the fourth quarter to $75 per barrel from $80, citing the likelihood of prices stabilizing around this level unless demand further deteriorates.
