<\/p>\n\n\n\n
Oil prices extended their gains on Tuesday, supported by production disruptions in the U.S. Gulf of Mexico following Hurricane Francine and expectations of a drop in U.S. crude inventories. The market is also anticipating a positive sentiment shift ahead of this week’s Federal Reserve interest rate decision.<\/p>\n\n\n\n
Brent and U.S. Crude Prices Rise<\/strong><\/p>\n\n\n\n Brent crude futures for November delivery rose by 34 cents, or 0.5%, to $73.09 a barrel, while U.S. crude futures for October delivery climbed 49 cents, or 0.7%, to $70.58 a barrel as of 04:20 GMT. Both contracts had settled higher in the previous session, driven by output concerns and a potentially favorable outcome from the Fed’s meeting.<\/p>\n\n\n\n Hurricane Francine\u2019s Impact on U.S. Production<\/strong><\/p>\n\n\n\n The ongoing impact of Hurricane Francine has significantly affected U.S. oil production. According to the U.S. Bureau of Safety and Environmental Enforcement (BSEE), over 12% of crude oil production and 16% of natural gas output in the Gulf of Mexico remain offline. This disruption has been a key factor supporting oil prices.<\/p>\n\n\n\n Fed Rate Cut Expectations Boost Market Sentiment<\/strong><\/p>\n\n\n\n In addition to output concerns, market sentiment has been buoyed by expectations of a Federal Reserve interest rate cut. Fed fund futures indicate a 69% probability of a 50 basis point cut on Wednesday. A lower interest rate is likely to reduce borrowing costs, which could support economic growth and increase oil demand.<\/p>\n\n\n\n U.S. Crude Stockpiles Expected to Decline<\/strong><\/p>\n\n\n\n Further supporting prices is an anticipated drop in U.S. crude inventories. A Reuters poll suggests that crude stockpiles likely fell by about 200,000 barrels in the week ending September 13, adding further bullish momentum to the market.<\/p>\n\n\n\n China’s Demand Concerns Cap Gains<\/strong><\/p>\n\n\n\n Despite these positive factors, gains in oil prices have been capped by concerns over weaker-than-expected demand growth in China, the world\u2019s largest crude importer. China\u2019s oil refinery output declined for the fifth consecutive month in August, reflecting reduced fuel demand and weak export margins.<\/p>\n\n\n\n The combination of U.S. output disruptions and global economic concerns, alongside the Fed’s anticipated easing, continues to drive oil market dynamics this week.<\/p>\n","protected":false},"excerpt":{"rendered":" Oil prices extended their gains on Tuesday, supported by production disruptions in the U.S. Gulf of Mexico following Hurricane Francine and expectations of a drop in U.S. crude inventories. The market is also anticipating a positive sentiment shift ahead of this week’s Federal Reserve interest rate decision. Brent and U.S. Crude Prices Rise Brent crude …<\/p>\n","protected":false},"author":9,"featured_media":103832,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,36],"tags":[11187,7604,8399,10587,7167],"class_list":["post-106026","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-market-updates","tag-cftc","tag-dollar-index","tag-libya","tag-middle-east-tensions","tag-yen"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=106026"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106026\/revisions"}],"predecessor-version":[{"id":106027,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/106026\/revisions\/106027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/103832"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=106026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=106026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=106026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}