📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Oil prices settle lower as Tropical Storm Beryl nears landfall in Texas

Published 07/07/2024, 08:57 PM
Updated 07/08/2024, 02:59 PM
© Reuters.
LCO
-
CL
-

Investing.com-- Oil prices settled lower Monday as traders weighed up fresh talks for over a Gaza ceasefire deal and the potential impact of tropical storm Beryl on oil production in the Gulf of Mexico. 

At 14:30 (18:30 GMT), Brent oil futures fell 0.51.1% to $85.62 a barrel, while West Texas Intermediate crude futures dropped 1% to settle at $82.33 a barrel.

Traders weigh Gaza ceasefire deal odds, ongoing U.S. crude demand 

Oil prices were hampered by hopes that a months-long war in Gaza may soon end as talks over a U.S. ceasefire plan are underway and being mediated by Qatar and Egypt.

A ceasefire would potentially see a risk premium being removed from the crude market.

Still on the demand side, bets on summer demand propping up oil prices remain front and center amid expectations that U.S. travel demand hit record highs during the Independence Day holiday last week. 

"US road travel remains relatively strong and helped push implied gasoline demand on a four-week basis up for the first time this year. US air traffic hit a record high on 23 June," ANZ Research said in a recent note.  

As well as summer demand, recent gains in oil prices have also been driven by concerns over weather-related supply disruptions.

Tropical storm Beryl approaches Texas 

The largest ports in Texas have closed operations and blocked traffic over the weekend to prepare for tropical storm Beyl, which is set to strengthen back into a hurricane before making landfall.

The storm is expected to pass through the biggest oil exporting regions in the state, with port closures presenting potential delays in oil shipments. 

Initial expectations had been for Beryl to have a negligible impact on production. But the storm unexpectedly remained strong after leaving a trail of devastation through Jamaica. 

The Gulf of Mexico is a key oil producing region for North America, and faces production disruptions every year during the summer storm season. 

 

Exxon Mobil (NYSE:XOM) to receive earnings boost from crude 

Exxon Mobil said on Monday changes in oil prices would increase the company's second-quarter upstream earnings by $300 million to $700 million compared with the first quarter.

The oil major would be reporting its first earnings after closing the acquisition of Pioneer Natural Resources for $60 billion, with the combined operations making it the largest oil producer in the Permian basin.

Exxon, however, said it expects changes in gas prices to decrease its quarterly upstream earnings by $300 million to $700 million compared with the first quarter.

The largest U.S. oil producer had posted $5.7 billion in upstream earnings for the first quarter ended March 31.

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.