Updates on Oil: Prices Remain Unchanged as Worries about Hurricane Damage Subside

Updates on Oil: Prices Remain Unchanged as Worries about Hurricane Damage Subside

Tuesday’s oil prices barely moved after a hurricane that struck Texas, a major US oil-producing region, did less damage than anticipated, allaying worries about a disruption in supplies, according to Reuters.

By 09:22 a.m. Saudi time, Brent futures increased by 4 cents to $85.79 per barrel, while US West Texas Intermediate crude increased by 2 cents to $82.35.

Hurricane Beryl, which reached the Texas coast and deteriorated into a tropical storm, seemed to have little effect on the main refineries along the US Gulf Coast, despite the fact that production facilities were evacuated and oil refining activities slowed.

In a client note, ING analysts Warren Patterson and Ewa Manthey stated, “Early indications suggest that most energy infrastructure has come through unscathed.” They also added that pricing behavior in the crude oil and refined gasoline markets shows little concern over supply disruption from the hurricane.

This reduced investor concerns on the possibility of a supply disruption in Texas, the state that produces 40% of the nation’s crude oil.

Prior to the hurricane, several significant oil-shipping ports in the Corpus Christi, Galveston, and Houston areas were closed. The Port of Houston was expected to reopen Tuesday afternoon, and the Corpus Christi Ship Channel reopened on Monday.

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