Sept 12 (Askume) – Oil prices rose in Asian trade on Thursday as Hurricane Francine hit output in the world’s top crude producer the United States, but concerns over falling demand limited gains.
November Brent crude futures were up 40 cents, or 0.6%, at $71.01 a barrel at 0330 GMT. U.S. crude futures for October delivery rose 32 cents, or 0.5%, to $67.63 a barrel.
Both contracts rose more than $1, or 2%, from the previous session as Hurricane Francine devastated southern Louisiana on Wednesday , shutting down offshore platforms in the U.S. Gulf of Mexico and disrupting operations at coastal refineries.
“Both benchmarks, WTI and Brent, have found some support amid concerns about disruptions in US oil supplies,” said Priyanka Sachdeva, senior market analyst at Singapore brokerage Phillip Nova.
“This region accounts for about 15% of US oil production and any disruption in production could lead to supply shortages in the near future.”
But when the storm finally abated after making landfall, the oil market’s focus returned to falling demand.
US oil inventories rose sharply last week as crude imports rose and exports fell, the US Energy Information Administration said on Wednesday.
The data also showed that gasoline demand fell to the lowest level since May, while demand for distillates also fell and refineries were shut. The United States is the world’s biggest oil consumer.
Earlier this week, the Organization of Petroleum Exporting Countries cut its forecast for global oil demand growth in 2024 and lowered its forecast for next year, its second consecutive reduction.
“Oil traders now await the International Energy Agency’s monthly market report later this week for any signs of softening demand,” ANZ Research said in a note on Thursday.
