Oil Prices Rebound Amid Hurricane Francine Threat
Investing.com — Oil prices rebounded Wednesday from a deep slide a day earlier as traders shifted focus to potential supply disruptions from the impact of Hurricane Francine, which is set to make landfall later in the evening.
At 1:39 p.m. ET (1539 GMT), Brent oil futures expiring in November rose 2.3% to $70.77 a barrel, while West Texas Intermediate crude futures ticked up by 2.8% to $67.56 per barrel.
Francine Becomes a Hurricane, Gulf of Mexico Production Impacted
Francine became a category-one hurricane on Tuesday evening, with the storm set to make landfall in Louisiana on Wednesday.
The storm is set to cut a path of destruction across the American mid-South in the coming days, prompting numerous oil and gas producers to halt output in the Gulf of Mexico, which accounts for about 15% of U.S. total crude output.
Any disruptions in production are likely to tighten supplies in the near-term.
US Inventories Increased by Fewer Than Expected
Data from the Energy Information Administration reported U.S. oil inventories increased by 833,000 barrels in the week to Sept. 6, against expectations for an increase of 900,000.
Gasoline inventories increased by 2.3 million barrels, contrary to expectations for a draw of 400,000 barrels. Distillate stocks also rose by 2.3 million, well above the anticipated 300,000 barrel build.
_(Scott Kanowsky, Ambar Warrick contributed to this report.)
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