WTI Oil Consolidates around $68.00 due to supply disruptions caused by Tropical Storm Francine
- WTI price holds its position due to operations closure at Brownsville and other smaller Texas ports on Monday.
- National Hurricane Center’s data indicate that at least 125,000 barrels per day of Oil production is at risk of disruption.
- APPEC conference speakers noted that China’s sluggish economy is slowing Oil demand growth.
The West Texas Intermediate (WTI) oil price remained constant at roughly $68.00 per barrel throughout Tuesday’s Asian trading session. Tropical Storm Francine’s supply disruptions are driving up crude oil prices. According to an ANZ analyst note, citing data from the National Hurricane Center (NHC), “at least 125,000 barrels per day (bpd) of oil production is at risk of disruption.”
On Monday evening, the US Coast Guard ordered the shutdown of all operations at Brownsville and other smaller Texas ports as Tropical Storm Francine moved across the Gulf of Mexico. The port of Corpus Christi remained open, although with limits, according to Reuters.
Tropical Storm Francine is predicted to strengthen into the fourth hurricane of the Atlantic season, which will end on November 30. The National Hurricane Center expects Francine will become a Category 1 hurricane with gusts of up to 85 mph (137 kph) before making landfall on the Louisiana coast on Wednesday evening.
According to Reuters, global commodity dealers Gunvor and Trafigura predict oil prices to range between $60 to $70 per barrel, driven by poor Chinese demand and persistent global oversupply. According to speakers at Monday’s APPEC conference, China’s switch to lower-carbon fuels, along with a sluggish economy, is restraining oil demand growth in the world’s top crude importer.
