Crude oil gains in Asia with Irma impact and Chinese yuan in focus
Oil prices gained in Asia on Monday as the impact of Hurricane Irma has not been as severe needless to say thus far, but nevertheless packed a wallop for Florida all the while its intensity was downgraded and as investors eyed China crude buying trends from the wake on the strongly stronger yuan.
Hurricane Irma bumped out capability above 2.4 million homes and businesses in Florida on Sunday, threatening millions more while it crept inside the state’s west coast, and full restoration and services information will need weeks, local electric utilities said.
But after Hurricane Irma hit Florida on Sunday morning being a dangerous Category 4 storm, the second highest level around the five-step Saffir-Simpson scale, it weakened to some Category 2 with maximum sustained winds of 110 mph (177 kph).
The yuan gained to its highest level since May 2019 on Monday, an advantage for commodity imports priced in dolalrs which are imported into China for example oil.
U.S. West Texas Intermediate (WTI) crude futures rose 0.67% to $47.80 a barrel. Brent crude, the benchmark for oil prices away from U.S. gained 0.35% to $53.97 a barrel. The global benchmark closed a while back having a gain of $1.03, or around 1.9%, after rising to some more than four-month high of $54.87 on Thursday.
Later soon, market participants will eye fresh weekly home elevators U.S. stockpiles of crude and refined products and Wednesday to further weigh the impact of brand new storm activity was on supply and demand.
Oil traders will also target monthly reports from the Organization of Petroleum Exporting Counties and the International Energy Agency to assess global oil demand and supply levels. Your data will provide traders a better picture of whether an international rebalancing has taken invest the oil market.
Last week, oil prices tumbled on Friday, hit by concern over reduced demand as U.S. refineries saw a sluggish recovery from flooding on account of Hurricane Harvey.
Prices were further weighed as uncertainty gripped the force market in the potential impact of Hurricane Irma while it approached the U.S.
Two weeks after storm system Harvey knocked out roughly one fourth of U.S. oil refining capacity, refineries across the Gulf coast are slow to restart, weighing when needed for crude oil, the principal input at refineries.
The dip successful was reflected in a very report within the Energy Information Administration (EIA) on Thursday showing crude stockpiles rose for the first time in ten weeks.
Harvey’s impact was also felt in oil production. Oilfield services firm Baker Hughes said on Friday its weekly count of oil rigs operating in the U.S. declined by 3 to 756.
But the slowdown in refining and output needs to be temporary.