Oil prices slipped on Tuesday after Hurricane Beryl, which struck a key US oil-producing hub in Texas, caused less damage than anticipated, alleviating concerns over supply disruption.
By 0852 GMT, Brent futures had fallen by 49 cents (0.6%) to $85.26 a barrel, while US West Texas Intermediate (WTI) crude decreased by 54 cents (0.7%) to $81.79 a barrel.
Although oil refining activity slowed and some production sites were evacuated, major refineries along the US Gulf Coast experienced minimal impact from Hurricane Beryl, which weakened to a tropical storm after hitting the Texas coast. “Early indications suggest that most energy infrastructure has come through unscathed,” ING analysts Warren Patterson and Ewa Manthey noted, indicating minimal market concern over supply disruption.
This development eased worries about potential supply disruptions in Texas, where 40% of US crude oil is produced. Major oil-shipping ports around Corpus Christi, Galveston, and Houston had been closed ahead of the storm. The Corpus Christi Ship Channel reopened on Monday, and the Port of Houston was expected to resume operations by Tuesday afternoon. Key refiners like Marathon Petroleum were also preparing to restart their refining units.
Market participants are also monitoring the Middle East for further trading cues. Oil prices had settled down 1% on Monday amid hopes that a possible ceasefire deal in Gaza could reduce concerns about global crude supply disruption. US officials were in Egypt for talks on Monday, though significant gaps remained, and Hamas stated that a new Israeli push into Gaza threatened the potential agreement.
“Crude futures were inching lower early Tuesday after a second consecutive session of losses suggested an overdue pullback from a nine-week high,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Additionally, markets are awaiting key US inflation data, with Federal Reserve Chair Powell set to appear before Congress on Tuesday and Wednesday. Investors are speculating that a series of weak labor market data has greatly increased the likelihood of an interest rate cut in September, with odds around 80%.
