Oil prices climbed during Asian trade on Thursday, driven by concerns over Hurricane Francine’s impact on U.S. oil production, the world’s largest crude producer. Brent crude futures for November delivery rose 40 cents, or 0.6%, to $71.01 a barrel by 0330 GMT, while U.S. crude futures for October gained 32 cents, or 0.5%, to $67.63 a barrel. This follows gains of over $1 in the previous session, where both benchmarks surged more than 2%.
The increase in prices comes as offshore platforms in the U.S. Gulf of Mexico were shut down and refinery operations on the coast were disrupted following Hurricane Francine’s landfall in southern Louisiana on Wednesday. The Gulf region accounts for roughly 15% of U.S. oil production, and any disruption in this area is likely to tighten supply in the short term.
“Both benchmarks, WTI and Brent, seem to have found some ground amid worries of disrupted U.S. oil supplies,” said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.
Despite these immediate concerns, market focus is also shifting to demand-side factors, which are likely to limit further price increases. Data from the Energy Information Administration (EIA) released on Wednesday revealed that U.S. oil stockpiles rose last week as crude imports grew and exports dipped, signaling potential lower demand in the market.
With Hurricane Francine expected to dissipate soon after landfall, oil market attention may increasingly turn back to underlying demand issues, even as supply constraints provide temporary support.
**Tags**: oil prices, Hurricane Francine, U.S. oil production, Brent crude, WTI crude, Gulf of Mexico, oil supply disruption, demand concerns, crude stockpiles, refinery shutdown
