Oil Prices Rise as Hurricane Francine Impacts Gulf of Mexico Production | Investing.com
Oil prices saw a rebound in Asian trade as Hurricane Francine threatened production in the Gulf of Mexico. Additionally, unexpected U.S. oil inventory draw provided some support. However, disappointing Chinese import data and OPEC's demand forecast cut weighed on the market.
Brent crude futures rose 0.5% to $69.51 a barrel, while WTI crude rose 0.6% to $65.50 a barrel.
Hurricane Francine, now a category-one hurricane, is expected to hit Louisiana, leading to production halts in the Gulf of Mexico, which accounts for 15% of U.S. oil production.
U.S. oil inventories saw a draw of 2.79 million barrels, defying expectations of an increase, according to API data. Gasoline inventories also declined, indicating strong demand despite the end of the summer season.
Despite these positive signs, oil prices hit a three-year low due to concerns over slowing global demand. China's shrinking oil imports and OPEC's reduced demand growth forecast added to fears of a demand slowdown.
In conclusion, the impact of Hurricane Francine on oil production, unexpected draw in U.S. inventories, and concerns over global demand are key factors driving oil prices in the market. Investors should monitor these developments closely to make informed decisions about their finances.