Oil prices slip after US crude hub escapes serious storm damage

By Noah Browning

(Reuters) -Oil prices slipped on Tuesday after a hurricane that hit a key U.S. oil-producing hub in Texas caused less damage than markets had expected, easing concerns over supply disruption.

Brent futures were down 44 cents, or 0.5%, to $85.31 a barrel at 1330 GMT, while U.S. West Texas Intermediate (WTI) crude was 28 cents, or 0.3%, lower at $82.05.

Although oil refining activity slowed and some production sites were evacuated, major refineries along the U.S. Gulf Coast appeared to see minimal impact from Hurricane Beryl, which weakened into a tropical storm after hitting the Texas coast.

“Early indications suggest that most energy infrastructure has come through unscathed,” ING analysts Warren Patterson and Ewa Manthey wrote in a client note, adding that price action in crude oil and refined fuel markets reflected little concern on supply disruption from the hurricane.

That eased market worries about the risk of supply disruption in Texas, where 40% of U.S. crude oil is produced.

Major oil-shipping ports around Corpus Christi, Galveston and Houston had been shut ahead of the storm. The Corpus Christi Ship Channel reopened on Monday and the Port of Houston was projected to resume operations on Tuesday afternoon.

Several key refiners such as Marathon Petroleum (NYSE:MPC) were also preparing to restart their refining units. [REF/OUT]

Market participants are also keeping an eye on the situation in the Middle East for more trading cues. Oil prices settled down 1% on Monday amid hopes a possible ceasefire deal in Gaza could reduce worries about global crude supply disruption.

Senior U.S. officials were in Egypt for talks on Monday, but gaps remained between the two sides, the White House said, and Hamas said a new Israeli push into Gaza threatened the potential agreement.

“Crude futures were inching lower early Tuesday after a second consecutive session of losses suggested an overdue pullback from (a) nine-week high,” said Vandana Hari, founder of oil market analysis provider Vanda (NASDAQ:VNDA) Insights.

Markets were also waiting for the release of key U.S. inflation data, with Federal Reserve Chair Powell set to appear before Congress on Tuesday and Wednesday, as investors wagered a slew of soft labour market data has greatly increased the chance of an interest rate cut in September to about 80%.

The “market will find a sympathetic bid if Powell’s comments are indeed friendly to a rate cut and if the U.S. CPI backs such language with a lower reading,” said John Evans, analyst at oil broker PVM.

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    You Want to Trade at 3AM? Schwab Opens Round-the-Clock Trading Access for All Clients

    • February 13, 2025
    You Want to Trade at 3AM? Schwab Opens Round-the-Clock Trading Access for All Clients

    Webull Dares to Enter Prediction Markets Where Robinhood Failed

    • February 13, 2025
    Webull Dares to Enter Prediction Markets Where Robinhood Failed

    Short-Term Analysis for BTCUSD, XRPUSD, and ETHUSD for 13.02.2025

    • February 13, 2025
    Short-Term Analysis for BTCUSD, XRPUSD, and ETHUSD for 13.02.2025

    Euro Surges as Trump Fuels Optimism. Forecast as of 13.02.2025

    • February 13, 2025
    Euro Surges as Trump Fuels Optimism. Forecast as of 13.02.2025

    Short-Term Analysis for Oil, Gold, and EURUSD for 13.02.2025

    • February 13, 2025
    Short-Term Analysis for Oil, Gold, and EURUSD for 13.02.2025

    Robinhood’s Crypto Revenue Surpasses Options in Q4 2024

    • February 13, 2025
    Robinhood’s Crypto Revenue Surpasses Options in Q4 2024