Oil edges higher after weekly decline as Gulf hurricane threat looms

Oil prices rose by $1 during Monday’s intra-day sessions, driven by concerns over a potential hurricane approaching the US Gulf Coast and a recovery from last week’s selloff following weaker-than-expected US jobs data in August. West Texas Intermediate (WTI) crude rose to $68.51/barrel, while Brent crude reached $71.88/barrel.

According to Reuters, analysts attributed the rebound to weather concerns, with the US National Hurricane Center forecasting a potential hurricane that could disrupt the Gulf Coast’s refining operations, which account for 60% of U.S. refining capacity.

Oil prices declined by 2% on Friday, capping a significant weekly decline due to weaker-than-expected US jobs data in August, which outweighed support from OPEC delaying supply increases. Brent crude settled at $71.06/barrel, marking its lowest since December 2021, while WTI fell to $67.67/barrel, its lowest since June 2023. For the week, Brent lost 10%, and WTI dropped 8%.