PT Solid Gold Berjangka | Oil Steadies as Storm and Wildfires Pose Twin Threats to Output
Minyak WTI brent oil Oil, Crude Oil PT SGB Solid Group SG Berjangka Solid Gold Berjangka
Solid Gold Berjangka | Crude oil settled down after four weekly gains as traders tracked two threats to production from U.S. storms and Canadian wildfires.
Brent held around the $86/bbl level after rising more than 8% since early June, while West Texas Intermediate dipped below $83/bbl. Storm Beryl is expected to strengthen rapidly as it approaches the Texas coast, and oil companies are expected to adjust their operations. Wildfires in Alberta are also threatening supplies.
Warren Patterson, head of commodities strategy at ING Groep NV in Singapore, said, “While Beryl puts offshore oil and gas production at risk, the concern when the storm makes landfall is the potential impact on refinery infrastructure. If the refinery shutdowns are prolonged, that would be bearish for crude and bullish for refined products.”
Crude oil hit its highest level since late April last week. Prices rose on expectations of higher demand and lower inventories through the summer. The rally was met with some resistance as China, the largest crude importer, remained weak, but market expectations of a U.S. interest rate cut have boosted risk assets, including commodities. Fund managers increased their net long positions in Brent for the fourth consecutive week.
As of 9:40 a.m. Singapore time, September Brent was 0.2% lower at $86.38 a barrel.
August WTI was down 0.4% to $82.82.
Source: Bloomberg