Oil Prices Dip as Hurricane Beryl Impact Fades and China’s Consumer Demand Weakens
Oil prices took a hit on Wednesday as the aftermath of Hurricane Beryl faded and inflation data revealed sluggish consumer demand in China, the world’s top crude importer.
Brent Futures Down, US West Texas Intermediate Crude Falls
Brent futures dropped 58 cents, or 0.69 percent, to $84.08 a barrel, while US West Texas Intermediate crude fell 48 cents, or 0.59 percent, to $80.93 a barrel.
Recovery in Texas Energy Industry After Hurricane Beryl
Both contracts saw a 3 percent decrease over the past three sessions as the Texas energy industry recovered from Hurricane Beryl’s impact. Oil and gas companies resumed operations, ports reopened, and production ramped up despite some facilities sustaining damage.
Market Analysis and Impact on Oil Prices
DBS Bank’s Suvro Sarkar noted that Hurricane Beryl’s passing was a major factor influencing oil prices, providing traders with an opportunity to secure profits after a recent bullish trend. Concerns over weak consumer demand in China also contributed to the price drop.
Global Events and Influence on Oil Prices
Negotiations for a ceasefire in the Gaza war and comments from US Federal Reserve Chair Jerome Powell about potential interest rate cuts added further complexity to the oil market. Powell’s remarks suggested that lower interest rates could boost economic growth and oil consumption.
US Inventory Data and Future Trends
Market sources indicated a decline in US crude oil and gasoline inventories, hinting at steady summer fuel demand. Investors are closely watching for further drawdowns in inventory, with anticipation for the upcoming US Energy Information Administration data release.