Oil prices slipped on Tuesday after a hurricane that hit a key US oil-producing hub in Texas caused less damage than markets had expected, easing concerns over supply disruption, reports Reuters.
Brent futures were down 44 cents, or 0.5 per cent, to $85.31 a barrel at 1330 GMT, while US West Texas Intermediate (WTI) crude was 28 cents, or 0.3 per cent, lower at $82.05.
Although oil refining activity slowed and some production sites were evacuated, major refineries along the US 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 per cent of US 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 were also preparing to restart their refining units.
Market participants are also keeping an eye on the situation in the Middle East for more trading cues. Oil prices settled down 1 per cent on Monday amid hopes a possible ceasefire deal in Gaza could reduce worries about global crude supply disruption.
Oil slips as concerns over hurricane damage ease
FE Team | Published: July 09, 2024 23:43:23
Oil slips as concerns over hurricane damage ease
Share if you like