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02/07/24
101
Crude Prices Drop on Fading Hurricane Fears
On Tuesday, Brent and U.S. West Texas Intermediate (WTI) crude prices dropped as fears continued to fade of supply disruptions caused by Hurricane Beryl.
Brent crude futures were 2 cents, or -0.02% lower at $86.58 per barrel U.S. West Texas Intermediate (WTI) crude dropped by 17 cents, or -0.20%, to $83.21 per barrel.
On Monday, WTI lifted $1 to $84.38 per barrel on fears that Beryl may have a bigger impact in the Gulf of Mexico as U.S. demand for motor fuels increases.
Both benchmarks rose around 2% in the prior session.
According to Phil Flynn, an analyst with the Price Futures Group, traders became less worried about supply problems as new forecasts were made on Monday.
Flynn said markets started realizing that Beryl was not going to shut down any major offshore oil production. Although some production may close, it would have a minimal impact on platforms.
Hurricane Beryl is a Category 5 hurricane moving through the Caribbean Sea. According to the U.S. National Hurricane Center, by the time it enters the Gulf of Mexico late this week, it will likely have weakened to a tropical storm.
With travel for the Independence Day holiday on Thursday, U.S. gasoline demand will likely peak this week.
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