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US CRUDE OIL PRICE AND ANALYSIS
Oil Prices were lower again on Tuesday on reports that Hurricane Beryl left crucial energy architecture in the Gulf of Mexico largely unscathed, easing near-term supply concerns. The area is usually responsible for just under half of all the United States’ oil output. Some production facilities were evacuated as the hurricane approached, leading to a slowdown in refinery activity at coastal sites. However, Beryl weakened after making landfall in Texas and was downgraded to a tropical storm from a Category 1 hurricane. There was relief at major oil shipping docks in the region which either re-opened on Tuesday or were scheduled to do so soon.
A ceasefire in Gaza remains tragically elusive, but efforts to get there continue. That prospect is also helping at the margin to ease worries about Middle Eastern oil supply.
Federal Reserve Chair Jerome Powell will deliver his regular testimony to Congress later. At present the markets suspect, or hope, that US interest rates will at last start to fall in September. For as long as this prospect is live, there will probably be a floor under oil prices as investors anticipate increased energy demand.
US inventory numbers will be closely watched for a repeat of recent, heavy drawdowns.
Oil Prices were lower again on Tuesday on reports that Hurricane Beryl left crucial energy architecture in the Gulf of Mexico largely unscathed, easing near-term supply concerns. The area is usually responsible for just under half of all the United States’ oil output. Some production facilities were evacuated as the hurricane approached, leading to a slowdown in refinery activity at coastal sites. However, Beryl weakened after making landfall in Texas and was downgraded to a tropical storm from a Category 1 hurricane. There was relief at major oil shipping docks in the region which either re-opened on Tuesday or were scheduled to do so soon.
A ceasefire in Gaza remains tragically elusive, but efforts to get there continue. That prospect is also helping at the margin to ease worries about Middle Eastern oil supply.
Federal Reserve Chair Jerome Powell will deliver his regular testimony to Congress later. At present the markets suspect, or hope, that US interest rates will at last start to fall in September. For as long as this prospect is live, there will probably be a floor under oil prices as investors anticipate increased energy demand.
US inventory numbers will be closely watched for a repeat of recent, heavy drawdowns.
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