After a turbulent weekend in the United States where millions were evacuated in preparation for hurricane Irma, the second natural disaster to hit the US coast in the past few weeks, the oil market has seen some changes.
The devastation index of hurricane Irma was downgraded and the actual negative impact of the hurricane was less than expected. As a result, this calmed apprehensions about insufficient energy in the United States, who have still not recovered from hurricane Harvey’s damage to oil plants from a few weeks ago.
In this new revised outlook, crude oil futures were able to increase to $47.88 (WTI). Brent crude futures are up to $54.05, and the global price for oil has also managed to stay relatively high despite the storms at $54.87. Gasoline and natural gas prices are also increasing.
Oil prices are further boosted on the expectation that OPEC will extend its agreement to cut back on oil extraction and the fact that even non-OPEC countries such as Russia and Venezuela have shown a readiness to join in and work together to curb the oversupply issue.
