Oil prices hold steady as storm fears recede

9 Jul 2024 , 08:49 AM

Oil prices were barely altered early Tuesday as a hurricane slammed a key US oil production area in Texas, causing less damage than feared.

Brent futures declined 4 cents to $85.71 a barrel, while US West Texas Intermediate (WTI) crude fell 5 cents to $82.28.

Although oil refining activities slowed and several production facilities were evacuated, major refineries along the United States Gulf Coast looked to be unaffected by Hurricane Beryl, which deteriorated into a tropical storm after hitting the Texas coast.

This alleviated market concerns about the possibility of supply interruptions in Texas, where 40% of US crude oil is produced.

Major oil-shipping ports around Corpus Christi, Galveston, and Houston had been closed in preparation for the hurricane. The Corpus Christi Ship Channel reopened on Monday, and the Port of Houston is expected to start operations on Tuesday afternoon.

Market investors are also keeping an eye on the situation in the Middle East for more trade opportunities. Oil prices fell 1% on Monday, on hopes that a probable truce in Gaza would alleviate concerns about global petroleum supply disruptions.

Senior US officials were in Egypt on Monday for negotiations, but the White House warned there were still gaps between the two sides, and Hamas feared a new Israeli drive into Gaza jeopardised the potential agreement.

Last week, Hamas dropped its demand for Israel to commit to a permanent ceasefire, which Israelis believed paved the path for an agreement.

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