Oil Prices Rebound Amid Looming Hurricane Threat

10 Sep 2024 , 09:45 AM

Oil prices climbed by around 1% on Monday, amid concerns that a hurricane expected to hit Louisiana on Wednesday may hamper production and refining along the United States Gulf Coast.

Brent futures rose 78 cents, or 1.1%, to $71.84 a barrel, while US West Texas Intermediate (WTI) crude rose $1.04, or 1.5%, to end at $68.71.

On Friday, Brent and US diesel futures closed at their lowest levels since December 2021. WTI closed at its lowest price since June 2023, while US petrol futures closed at their lowest since February 2021.

In the United States, oil and gas firms along the Gulf Coast began evacuating employees and reducing drilling to preparation for Tropical Storm Francine as it churned across the Gulf of Mexico.

Francine is expected to intensify into a hurricane on Tuesday before making landfall on the Louisiana coast, according to the National Hurricane Centre. According to the United States Energy Information Administration (EIA), the Gulf Coast accounts for approximately 50% of the country’s refining capacity.

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