NEW YORK: Oil prices edged up about 1% on Monday after falling to multi-month lows last week on concerns a hurricane forecast to hit Louisiana this week could disrupt production and refining along the US Gulf Coast.
Brent futures rose 57 cents, or 0.8%, to $71.63 a barrel by 12:22 p.m. EDT (1622 GMT), while US West Texas Intermediate (WTI) crude rose 78 cents, or 1.2%, to $68.45.
Despite the small price increase, Brent futures remained in technically oversold territory for a fifth day in a row for the first time since May 2024.
On Friday, Brent and US diesel futures closed at their lowest since December 2021. WTI closed at its lowest since June 2023 and US gasoline futures closed at their lowest since February 2021.
In the Gulf of Mexico, the US National Hurricane Center projected Tropical Storm Francine will strengthen into a hurricane on Tuesday before hitting the Louisiana coast on Wednesday. The US Gulf Coast accounts for about 60% of the country’s refining capacity.
“A small recovery in prices is under way ... inspired by hurricane warnings that might threaten the US Gulf Coast, but the wider conversation remains on where demand will come from and what OPEC+ can do,” said PVM analyst John Evans.
OPEC+ includes the Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia.
In Libya, an OPEC member, the country’s National Oil Corp declared force majeure on several crude cargoes loading from the Es Sider port, with oil production curtailed by a political standoff over the central bank and oil revenue.
The OPEC+ oil producer group has agreed to delay a planned output increase of 180,000 barrels per day for October by two months in reaction to tumbling crude prices.
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