Oil prices edged higher as storm Rafael threatened US supply disruption
Industry experts have warned that the storm could potentially reduce oil output by as much as 4 million barrels, adding to ongoing supply uncertainties. Furthermore, the depreciation of the US dollar against other major currencies made oil more affordable in international markets.
Oil prices rose on Tuesday, November 5, driven by concerns over potential disruptions to supply as Tropical Storm Rafael intensified in the Gulf of Mexico, a key oil-producing region. The storm's potential to affect production in the Gulf, combined with a weakening US dollar ahead of the upcoming election results, provided additional support for oil prices in the short term.
Brent crude gained $0.45, to settle at $75.53/barrel.
WTI crude rose $0.52, to close at $71.99/barrel.
Industry experts have warned that the storm could potentially reduce oil output by as much as 4 million barrels, adding to ongoing supply uncertainties. Furthermore, the depreciation of the US dollar against other major currencies made oil more affordable in international markets.
Looking ahead, market participants are also focused on the upcoming US Federal Reserve meeting, where a potential interest rate cut could further impact oil prices. Additionally, the ongoing National People’s Congress (NPC) in China is expected to play a significant role in shaping market sentiment and may bolster demand for oil.
Written by: Muhammad Hafiz