Oil Prices Hold Steady Amid Weakening Demand

12 Sep 2024 , 10:03 AM

Oil prices remained steady on Thursday, as concerns about decreased demand reversed the previous session’s gains caused by Hurricane Francine’s impact on output in the United States, the world’s largest petroleum producer.

Brent crude futures for November were up 24 cents, or 0.34%, to $70.86 a barrel. US crude futures for October were up 20 cents, or 0.30%, at $67.52.

Both contracts increased by more than $1, or more than 2%, in the previous session when Hurricane Francine made landfall in southern Louisiana on Wednesday, shutting down offshore platforms in the United States Gulf of Mexico and disrupting refinery operations along the coast.

However, with the storm expected to fade after reaching landfall, the oil market’s emphasis returned to decreased demand.

The Energy Information Administration said on Wednesday that US oil stockpiles increased across the board last week as crude imports increased and exports decreased.

The statistics also revealed that petrol demand plummeted to its lowest level since May, while distillate fuel demand dropped, as did refinery runs. The United States is the world’s largest oil consumer.

Earlier this week, the Organisation of Petroleum Exporting Countries reduced its prediction for global oil demand growth in 2024 and lowered its outlook for next year, marking the second straight downward revision.

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