

Oil prices rebound as U.S. Gulf coast braces for hurricane

Oil prices made a sharp recovery as the threat of a hurricane in the U.S. Gulf Coast sparked concerns over potential supply disruptions. West Texas Intermediate (WTI) oil prices (Symbol: USOUSD) and Brent crude oil prices (Symbol: UKOUSD) increased. The Gulf Coast represents a critical hub, with roughly 60% of U.S. refining capacity located there. Any disruption caused by extreme weather could result in tighter supply, which is a key element in oil trading, and lead to the bounce in prices after last week’s market turmoil when oil experienced significant losses. Read more to find out why oil prices rebound.

why oil prices rebound

Disclaimer:

The potential hurricane could cause short-term supply disruptions, which may present buying opportunities if prices spike further. However, traders must remain wary of demand-side pressures, particularly from China. The weak U.S. labour market data could also play a role in influencing market sentiment in the days ahead, particularly as traders await further cues from the Federal Reserve’s interest rate decision. Traders are advised to prioritize proper risk management to make well-informed trading decisions.

Publication date:

2024-09-16 16:02:59 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.