Brent and WTI Crude Prices Dip as Hurricane Beryl Threat Diminishes

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Brent and U.S. West Texas Intermediate (WTI) crude oil prices fell on Tuesday as fears of supply disruptions from Hurricane Beryl eased.

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Brent crude futures were down 2 cents, or 0.02%, at $86.58 a barrel at 12:35 CDT (1735 GMT). U.S. West Texas Intermediate (WTI) crude dropped 17 cents, or 0.20%, to $83.21.

Earlier on Monday, WTI had risen $1 to $84.38 a barrel over concerns that Beryl might significantly impact Gulf of Mexico oil production, especially as U.S. demand for motor fuels increases.

Both benchmarks saw a roughly 2% gain in the previous session. However, as updated forecasts came in on Monday, traders became less worried about supply issues, explained Phil Flynn, an analyst with the Price Futures Group.

“Markets realized that Beryl is not going to shut down any major offshore oil production,” Flynn said. “There may be some shutdowns, but the impact on platforms will be minimal.”

Hurricane Beryl, a Category 5 storm, is currently tearing through the Caribbean Sea and is expected to weaken to a tropical storm before entering the Gulf of Mexico later this week, according to the U.S. National Hurricane Center.

“We dodged a bullet on Beryl,” said John Kilduff, a partner with Again Capital LLC. “But there is an understanding that any storm developing in the Gulf is likely to be significant.”

U.S. gasoline demand is expected to peak this week due to travel for the Independence Day holiday on Thursday. The American Automobile Association (AAA) has forecast a 5.2% increase in travel during the holiday period compared to 2023, with car travel up by 4.8%.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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