The oil market experienced a subtle shift on Friday, September 13, 2024, as prices fell slightly.
Traders reevaluated the potential supply disruption caused by Storm Francine in the Gulf of Mexico.Despite the days decline, oil prices managed to climb over the week.
This partial recovery offset some of the previous weeks steep losses.West Texas Intermediate (WTI) crude for October delivery closed at $68.65 per barrel.
This represented a 0.46% decrease, or $0.32, on the New York Mercantile Exchange.Brent crude for November delivery settled at $71.61 per barrel on the Intercontinental Exchange.
It fell by 0.50%, or $0.36.
For the week, WTI crude gained 1.45%, while Brent crude rose by 0.77%.Early Friday, oil prices initially surged by over 1%.
This spike was fueled by a weakening dollar and news of more Gulf oil platforms halting operations.Oil Prices Dip as Storm Francines Impact Reassessed.
(Photo Internet reproduction)However, the markets sentiment shifted as forecasts suggested Storm Francine would be short-lived.
Traders anticipated minimal damage to oil infrastructure, allowing for quick operational resumption.Capital Economics predicts Brent crude will likely end the year at nearly $70 per barrel.
They cite weak global demand as a key factor pressuring prices.Bank of America projects Brent at $70 from 2026 onward.
However, they warn that current conditions could push prices closer to $60, testing the oil markets resilience.Both analysts emphasize the ongoing weakness in oil demand.
They see little prospect for a significant upturn in consumption in the near future.This price fluctuation highlights the oil markets sensitivity to weather events and global economic conditions.
It underscores the delicate balance between supply, demand, and external factors in shaping oil prices.