InfoQuest – New York's West Texas Intermediate (WTI) crude futures closed negative on Tuesday (July 2) after investors eased concerns about Hurricane Beryl's impact on oil supplies.
The West Texas Intermediate crude contract is due for delivery in August. Oil fell 57 cents, or 0.68%, to close at $82.81 a barrel.
Brent crude futures (BRENT) are due for delivery in August. Oil fell 36 cents, or 0.42%, to close at $86.24 a barrel.
West Texas Intermediate crude oil prices rose 1% to $84.38 a barrel on Monday, as investors worried that Hurricane Beryl’s impact will affect offshore oil production in the Gulf of Mexico, especially at a time when demand for fuel for driving vehicles in the United States is increasing.
But oil prices weakened. After the U.S. National Hurricane Center said that Hurricane Beryl, a Category 5 storm, had moved across the Caribbean Sea. The hurricane is expected to weaken to a tropical storm when it moves into the Gulf of Mexico later this week.
Phil Fine, an analyst at Price Futures Group, said investors were relieved by the impact of Hurricane Beryl. He believes the hurricane will not cause major disruption to offshore oil production. It will have very little impact on oil platforms.
Gasoline demand in the U.S. is likely to peak this week. With people heading out for the Independence Day holiday on Thursday (July 4), the American Automobile Manufacturers Association (AAA) expects holiday travel to increase 5.2% from 2023 levels, at which time car travel will increase 4.8%.