Oil Prices Continue Rally, Capping a Volatile Week
13 Sep 2024
2 Min Read
CW Team
Oil prices continued their rally, which was initiated by output disruptions in the U.S. Gulf of Mexico. These disruptions were caused by Hurricane Francine, which led to the evacuation of production platforms before the hurricane reached the Louisiana coast.
Brent crude futures increased by 34 cents, or 0.5 per cent, reaching $72.31 per barrel as of 0016 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents, or 0.6 per cent, to $69.35 per barrel.
If these gains are sustained, both benchmarks are expected to break a streak of weekly declines, despite a challenging start that saw Brent crude dip below $70 per barrel for the first time since late 2021. At the current levels, Brent crude is projected to see a weekly increase of approximately 1.7 per cent, while WTI is anticipated to gain over 2 per cent.
Oil producers were assessing damage and conducting safety checks on Thursday in preparation for resuming operations in the U.S. Gulf of Mexico. Estimates of supply loss due to Francine were emerging. UBS analysts forecasted a decline in regional output in September by 50,000 barrels per day (bpd) compared to the previous month, while FGE analysts predicted a 60,000 bpd decrease to 1.69 million bpd.
Official data indicated that nearly 42 per cent of the region's oil output was shut in as of Thursday.
This supply shock contributed to a recovery in oil prices from a sharp selloff earlier in the week, which had seen benchmarks fall to multi-year lows due to demand concerns.
Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, attributing the revision to economic challenges in China, the world鈥檚 largest oil importer. The shift towards lower-carbon fuels was also noted as a factor affecting China's oil demand, according to speakers at the APPEC conference. Customs data released showed that China's crude oil imports averaged 3.1 per cent lower from January to August this year compared to the same period last year.
Oil prices continued their rally, which was initiated by output disruptions in the U.S. Gulf of Mexico. These disruptions were caused by Hurricane Francine, which led to the evacuation of production platforms before the hurricane reached the Louisiana coast.
Brent crude futures increased by 34 cents, or 0.5 per cent, reaching $72.31 per barrel as of 0016 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents, or 0.6 per cent, to $69.35 per barrel.
If these gains are sustained, both benchmarks are expected to break a streak of weekly declines, despite a challenging start that saw Brent crude dip below $70 per barrel for the first time since late 2021. At the current levels, Brent crude is projected to see a weekly increase of approximately 1.7 per cent, while WTI is anticipated to gain over 2 per cent.
Oil producers were assessing damage and conducting safety checks on Thursday in preparation for resuming operations in the U.S. Gulf of Mexico. Estimates of supply loss due to Francine were emerging. UBS analysts forecasted a decline in regional output in September by 50,000 barrels per day (bpd) compared to the previous month, while FGE analysts predicted a 60,000 bpd decrease to 1.69 million bpd.
Official data indicated that nearly 42 per cent of the region's oil output was shut in as of Thursday.
This supply shock contributed to a recovery in oil prices from a sharp selloff earlier in the week, which had seen benchmarks fall to multi-year lows due to demand concerns.
Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, attributing the revision to economic challenges in China, the world鈥檚 largest oil importer. The shift towards lower-carbon fuels was also noted as a factor affecting China's oil demand, according to speakers at the APPEC conference. Customs data released showed that China's crude oil imports averaged 3.1 per cent lower from January to August this year compared to the same period last year.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..
