Oil rebounds as hurricane threat stabilises markets

Oil futures rose slightly due to potential US Gulf Coast hurricane and Libyan supply disruptions after recent losses

LONDON:

Oil futures edged up on Monday as the risk of production disruptions from a potential hurricane approaching the US Gulf Coast helped prices steady after last week's heavy losses.

Brent crude was up 16 cents, or 0.23%, to $71.22 a barrel at 1315 GMT while West Texas Intermediate crude futures were 19 cents, or 0.28%, higher at $67.86.

Brent prices had fallen in each of the past six trading sessions, shedding more than 11%, or nearly $9 a barrel, to register the lowest closing price since December 2021 on Friday. Analysts said Monday's rebound was partly in response to a potential hurricane near the US Gulf Coast, while Libyan supply disruption has also been supporting prices. Libya's NOC last week declared force majeure on several crude cargoes loading from the Es Sider port, with oil production curtailed by a political standoff over the central bank and oil revenue, four trading sources told Reuters. A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the north-western US Gulf Coast.