Oil prices remained steady on Tuesday as markets monitored the potential impact of Tropical Storm Beryl on U.S. oil production, alongside ongoing ceasefire negotiations between Israel and Hamas.
Following significant declines on Monday due to profit-taking and heightened speculation surrounding a Gaza ceasefire, Brent oil futures for September delivery held steady around $85.72 per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures stabilized at $81.49 per barrel as of 20:40 ET (00:40 GMT).
Tropical Storm Beryl Disrupts Gulf Coast Operations
Tropical Storm Beryl made landfall in Texas on Monday, causing widespread power outages and disruptions in the state’s oil sector. Although initially intensifying to a Category 1 hurricane upon landfall, Beryl weakened to a tropical storm and is expected to further diminish as it moves along the coast. Despite this, several oil producers, exporters, and refiners suspended operations along the Gulf of Mexico, potentially impacting near-term U.S. oil supply. Significant terminals in Texas faced anticipated disruptions, though the full extent remains uncertain. Analysts had initially downplayed Beryl’s impact on U.S. oil production.
Focus on China’s Economic Data and Trade Tensions
Market attention this week also turned to a series of economic data releases from China, anticipated to offer insights into the outlook for the world’s largest oil importer. Chinese trade and inflation figures expected throughout the week were poised to influence demand projections. Concerns persisted regarding potential trade tensions between China and the West following the European Union’s imposition of substantial tariffs on Chinese electric vehicle imports.
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