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Crude oil futures fell for a third straight session on Tuesday after Hurricane Beryl appeared to cause little lasting damage to energy facilities along the Texas coast and operations were expected to be fully restored soon.
Many refineries closed Those facilities have been brought back online or are in the process of being brought online as a precaution before the storm, and the Houston Ship Channel is expected to fully reopen Wednesday, said Tyler Richey, research co-editor of Seven Reports. market observation.
“The anxiety has left as we get more reports from Texas and Houston that things are a little crowded, but that’s okay,” John Kilduff of Again Capital said, according to Reuters market.
But analysts at Goldman Sachs said this year’s Atlantic hurricane season is expected to be more severe than usual, posing an upside risk to refining profits rather than crude prices.
“The recent refinery response to low margins and the low positioning of refined products, especially gasoline, are key reasons why we believe product margins have more upside than crude oil prices,” Goldman wrote.
The bank also maintained its forecast for Brent crude prices to average $86 a barrel this quarter, noting that OECD commercial inventories continue to draw down while spreading wildfires in Alberta have disrupted Canadian oil production.
Front-month Nymex crude oil (CL1:COM) for August delivery has been settled -1.1% To $81.41/barrel, front month September Brent crude oil (CO1:COM) closed -1.2% to US$84.66/barrel.
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In its short-term energy outlook, the U.S. Energy Information Administration raised its price forecasts for Brent crude oil and WTI in 2024 and 2025, citing expectations of “continued declines in global oil inventories.”
The EIA said it expects Brent spot prices to average $86.37 per barrel this year, up from its previous forecast of $84.15, while WTI crude prices are expected to average $82.03 per barrel, up from its previous forecast of $79.70.
The EIA said global oil demand will average 104.7 million barrels per day next year, with total supply at 104.6 million barrels per day, reversing its previous surplus forecast.
“We expect OPEC+ crude oil production to remain below the group’s announced target over the forecast period, reducing global oil inventories through mid-2025 and keeping OECD inventories near the bottom of the range,” the EIA said. .
