Brent crude futures for November were up $1, or 1.4% at $71.61 a barrel and U.S. crude futures for October were up 92 cents, or 1.4%, at $68.23 a barrel
Oil prices gained more than 1% on Thursday, spurred by concerns of Hurricane Francine impacting output in the U.S., the world’s biggest crude producer, though worries of lower demand capped gains.
Brent crude futures for November were up $1, or 1.4% at $71.61 a barrel at 0632 GMT. U.S. crude futures for October were up 92 cents, or 1.4%, at $68.23 a barrel.
Both contracts gained by more than 2% in the previous session as offshore platforms in the U.S. Gulf of Mexico were shut and refinery operations on the coast disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.
Both benchmarks, WTI and Brent, appear to have found some ground amid worries of disrupted U.S. oil supplies, according to Priyanka Sachdeva, senior market analyst at Phillip Nova.
The region accounts for nearly 15% of U.S. oil production, with any disruptions in production likely to tighten supplies in the near term, she added.
But with the storm set to eventually dissipate after making landfall, the oil market’s focus again turned to lower demand.
U.S. oil stockpiles increased across the board last week as crude imports rose and exports declined, the Energy Information Administration (EIA) said on Wednesday.
The data also showed gasoline demand dropped to its lowest since May at the same time distillate fuel demand declined, with refinery runs also dropping.
Despite worries of Hurricane Francine impacting supply, the medium-term trend remains bearish for WTI crude, supported by weak demand from China and growth scare concerns in the U.S., according to Kelvin Wong, senior market analyst at OANDA.
Earlier in the week, the Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth in 2024 and also cut its expectation for next year, its second successive downward revision.
