TOKYO, Sept 11 (Askume) – Crude oil prices rose on Wednesday as concerns about oil supply disruptions from Tropical Storm Francine outweighed demand worries.
Brent crude futures were up 39 cents, or 0.6%, at $69.58 a barrel by 0031 GMT, while U.S. crude futures were up 44 cents, or 0.7%, at $66.19 a barrel.
Both benchmarks fell about $3 on Tuesday, with Brent hitting its lowest since December 2021 and WTI hitting a May 2023 low, after OPEC+ cut its demand forecasts for this year and 2025 .
“Investors adjusted their positions after the stock market’s sharp drop on Tuesday,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
“Prices are rising because some production facilities have been suspended and there are concerns that hurricanes could disrupt supplies,” he said, but he expects the market to remain depressed amid concerns about a slowdown in global demand.
Tropical Storm Francine will strengthen into a hurricane Tuesday night , the National Hurricane Center said , prompting Louisiana residents to flee their homes and forcing oil and gas companies to shut down production in the Gulf of Mexico.
The US Bureau of Safety and Environmental Enforcement (BSEE) said on Tuesday that the storm had halted about 24% of crude oil production in the US Gulf and 26% of natural gas production in the Gulf of Mexico .
On Tuesday, the Organization of Petroleum Exporting Countries (OPEC) said in a monthly report that world oil demand will grow by 2.03 million barrels per day in 2024, lower than last month’s forecast of 2.11 million barrels per day.
OPEC lowered its forecast for global demand growth in 2025 to 1.74 million barrels per day from 1.78 million barrels per day.
But the US Energy Information Administration (EIA) said on Tuesday that global oil demand will rise to record levels this year, while production growth will be slower than previously expected.
Meanwhile, China’s daily crude oil imports rose to their highest level in a year, supported by a drop in crude prices and improving refining margins, customs data and Askume records showed on Tuesday.
