(New York) Crude oil prices fell Monday as Hurricane Berylsweeping across Texas, threatens refining facilities, which has the potential to reduce immediate demand for crude.
The price of a barrel of North Sea Brent crude for delivery in September fell 0.91% to $85.17.
Its American equivalent, the barrel of West Texas Intermediate (WTI), for delivery in August, fell by 0.99% to 82.33%.
“When you have a hurricane, it becomes bearish for crude prices and bullish for refined products as the storm moves toward refineries,” said Matt Smith of Kpler.
If these facilities were to be damaged, it would reduce the demand for crude that needs to be refined, which is therefore bearish for prices.
After crossing the Caribbean, the hurricane Beryl hit Texas on Monday, with heavy rains causing the deaths of at least two people in the southern United States.
In Texas, more than 2 million homes were without power on Monday, according to the website poweroutage.us, and residents were evacuated.
“We see the prices of products increasing, such as gasoline,” the Kpler analyst stressed.
Ports along the Texas coast, such as Corpus Christi, have been closed.
“This impacts imports and exports” of petroleum products, Mr. Smith noted.
Several coastal areas of Texas, a region with heavy oil activity, were evacuated due to flood warnings and power outages as the storm approached, which weakened to a hurricane overnight Sunday into Monday.
First hurricane of the Atlantic season, which runs from early June to late November, Beryl is exceptionally powerful.
Price movements in the coming days “could depend on the extent of the damage caused by the hurricane,” Energi Danmark analysts estimated.