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08/07/24
166
Crude Prices Lower on Concerns Hurricane Beryl May Hit US Demand
On Monday, crude prices fell about 1% to a one-week low as Hurricane Beryl led to the closing of U.S. ports and refineries along the Gulf of Mexico, and on hopes a possible ceasefire in Gaza may reduce concerns about crude supply disruptions globally.
Brent futures were 75 cents, or 0.9% lower at $85.79 per barrel. U.S. West Texas Intermediate (WTI) crude dropped 84 cents, or 1.0%, to $82.32 per barrel. Hurricane Beryl hit Texas with heavy rain and strong winds as it moved inland. Hundreds of flights were canceled, oil ports closed, and close to 2M businesses and homes lost power.
ING analysts said in a note although this put some offshore gas and oil production at risk, the fear of when the storm hits land is the possible impact it may have on refinery infrastructure.
Talks about a U.S. ceasefire plan in the Middle East to end the 9-month-old war in Gaza are ongoing and being mediated by Egypt and Qatar.
ING analyst Tony Sycamore said if something comes from the ceasefire talks, it would remove some of the geopolitical bid from the market.
Investors were also watching for how elections in Iran, France, and the UK over the last week may affect energy and geopolitics policies.
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