On Tuesday, crude oil prices hit the highest level in five months as the impact of the preparation ahead of Hurricane Laura although the gain was capped by the resurgence of coronavirus cases in Asia and Europe.
Yesterday, Brent crude oil futures climbed by 1.6% or 73 cents to USD45.86/barrel while the US WTI jumped by 1.7% or 73 cents to close at USD43.35/barrel.
Both figures were the highest since March 5, the day before the price war erupted between Saudi Arabia and Russia, and a week before the coronavirus is declared a pandemic by the World Health Organization (WHO).
The US National Hurricane Center estimated Hurricane Laura to strengthen into a major hurricane with 115 mph or 185 kph winds before touching the coast near the Texas-Louisiana border early Thursday.
Anticipating the hurricane, Gulf of Mexico’s oil producers evacuated 310 offshore facilities and shut 84% of the Gulf’s offshore production or 1.56 million bpd.
Analysts expected the US crude inventories to fall for the fifth consecutive week in the week ended August 21 but the impact of the hurricane is estimated to be only temporary as soon the market would go back to focus on the coronavirus.
Europe and Asia have reported re-infections cases aside from the resurging cases.
On a side note, the trade officials of the US and China have reaffirmed their commitment to a Phase 1 trade deal.
