Janice R. Andrews
After going up for one day, oil prices levelled off. Brent crude stayed below $72 a barrel, and West Texas Intermediate (WTI) stayed close to $69. After a six-day losing streak, the market went up on Monday, which was caused by a risk-on mood around the world. The rise happened as U.S. stock markets got over worries about slower U.S. growth and China’s economy getting worse.
Stormy Weather Concerns were made about supply problems because Francine was getting stronger in the Gulf of Mexico. People on oil rigs have been told to leave because of the storm, which is expected to hit Louisiana as a Category 2 hurricane. Francine’s path puts at risk nine major oil sites in the Gulf, which could stop the flow of oil.
Even with these risks, the oil markets are still being careful. A market analyst at IG Asia named Yeap Jun Rong said, “Oil prices are stuck in a cautious tone, with little conviction for dip-buying despite supply risks from the storm.”
Traders are also waiting for important news from the Asia Pacific Petroleum Conference (APPEC) and OPEC’s monthly forecasts, which could give them more information about how the market will move. Some experts, like Trafigura Group’s Ben Luckock, said that Brent prices might drop to the $60s soon.
