Oil Prices Dip as Hurricane Threat Eases

8 Nov 2024 , 10:34 AM

Friday saw a modest fall in oil prices as the market continued to consider the potential impact of President-elect Donald Trump’s plans on supplies and the likelihood that a hurricane in the Gulf of Mexico would impact U.S. oil and gas output.

Brent crude oil futures dropped 26 cents, or 0.3 percent, to $75.37 per barrel. At $72.01, the price of U.S. West Texas Intermediate (WTI) oil increased 35 cents, or 0.5 percent. The benchmarks dropped after increasing by almost 1% on Thursday.

WTI is expected to increase 4.1 percent for the week, while Brent is expected to gain 3.1 percent.

According to the U.S. National Hurricane Centre, Hurricane Rafael, which has forced the closure of 391,214 barrels of crude oil production per day in the United States, is predicted to weaken starting on Friday and continuing through the weekend before moving slowly westward across the Gulf of Mexico and away from American fields.

Expectations that Trump’s incoming administration may increase sanctions on Iran and Venezuela, which might constrain supply, helped prices gain support on Thursday. However, gains were capped by a strong dollar and a decline in Chinese oil imports. Prices retreated on Friday.

A strong dollar tends to affect pricing and raises the cost of oil for holders of other currencies.

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