WTI Crude Oil Finds Support as Hurricane Zeta Hits US
WTI crude oil prices are making slight gains after losing around 5% during the previous session, as markets focus on the impact of Hurricane
Early on Thursday, WTI crude oil prices are making slight gains after losing around 5% during the previous session, as markets focus on the impact of Hurricane Zeta on crude production off the Gulf of Mexico. At the time of writing, WTI crude oil is trading at around $37.48 per barrel.
Crude oil prices have been trading under pressure amid concerns about weakness in demand, with the recent resurgence in coronavirus cases across the world and oversupply fears hurting the sentiment even further. However, the latest hurricane that has forced oil companies to shut down around two thirds of US output are lending some support for now, driving volatility in oil markets.
The impact of the hurricane is expected to be temporary as even though US crude production will dip for some time, Libya continues to increase oil output after the end of several months of blockade. Libya’s faster than expected ramping up of crude output has raised fears of a glut in oil markets even as demand remains weak and could get even weaker as more countries bring back lockdowns or restrictions due to the resurgence in cases.
WTI crude oil also traded bearish during the previous session following the release of the EIA report which revealed a bigger than expected build in US crude inventories. According to the EIA, crude stockpiles in the US increased by 4.3 million barrels over the past week.
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