Oil futures eased on Friday, but still managed a weekly gain a day after Hurricane Laura made landfall on the Gulf Coast but spared refineries and associated infrastructure were from extensive damage.
“No reports of major damage to refineries or massive flooding should allow the industry to bounce back quickly,” said Phil Flynn, senior market analyst at The Price Futures Group, in a Friday note, according to Marketwatch.com.
“While refineries may stay shut for weeks, they will use this opportunity to do maintenance, and after some seasonal weakness in prices, petroleum should resume its longer-term upward trend.”
West Texas Intermediate crude for October delivery dipped 7 cents, or 0.2%, to settle at $US42.97 a barrel in New York for a weekly gain of 1.5%.
In Europe, October Brent crude lost 4 cents, or 0.09%, at $US45.05 a barrel ahead of the contract’s expiration at Monday’s settlement. For the week, front-month contract prices climbed by 1.6%.
Hurricane Laura was responsible for at least six deaths and caused extensive damage as it came ashore and moved inland Thursday. However, production from oil rigs in the Gulf of Mexico and activity at refiners in the Gulf Coast, the heart of the U.S. oil-processing industry, is expected to rebound quickly and have no impact on demand/supply equations.
Also Friday, Baker Hughes reported a fall of 3 in the week’s number of active US. oil rigs. Last week, it was up by 11 rigs, following three weeks of declines.
