WTI Crude Oil Gains as Gulf of Mexico Braces for Hurricane Laura
Arslan Butt • 1 min read
WTI crude oil prices continue their upward climb into Wednesday over rising worries about supply disruptions after US oil producers closed most of their offshore production in the Gulf of Mexico in anticipation of Hurricane Laura. At the time of writing, WTI crude oil is trading at around $43.32 per barrel.
Crude oil prices received an additional boost after the US and China confirmed that they were committed to honoring the terms of the phase one trade deal. The positive comments from both sides came after senior officials held a review of the partial trade agreement via a phone discussion, and eased some of the tensions between the two countries and supported the risk-on sentiment in markets.
WTI crude oil also enjoyed support after the API reported a greater than expected decline in crude inventories in the US. According to the API, US crude stockpiles fell by 4.5 million barrels, higher than economists’ forecast for a decline by 3.6 million barrels instead.
However, WTI crude oil prices have been unable to strengthen significantly as the sentiment in oil markets is dominated by worries about the rise in coronavirus cases globally. According to latest news reports, cases of re-infection have been confirmed across Asia and Europe, which raises worries about when the pandemic could be brought under control.