(London) Crude prices were virtually flat on Wednesday as fears of disruptions to oil supplies caused by the storm Beryl have subsided.
At around 6:25 a.m., the price of a barrel of North Sea Brent crude for delivery in September was sluggish at $86.24.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in August, fell 0.07% to $82.75.
The day before, the price of black gold had climbed after the hurricane Beryl was temporarily classified as Category 5, the highest with winds exceeding 252 km/h and “potentially catastrophic” consequences.
This first hurricane of the season, particularly early, has since been relegated to category 4, Tuesday afternoon.
“The storm risk premium has eroded significantly,” notes John Evans, an analyst at PVM Energy, “with the latest forecast that Beryl would turn into a simple storm before entering the Gulf of Mexico, and the disappearance of the risks of potential damage to Mexican or American oil infrastructures.”
Beryl However, it is preparing to hit Jamaica and then the Cayman Islands on Wednesday after killing at least seven people and causing considerable destruction in the south-east Caribbean.
Evans said prices were slightly supported early in the session after the API, the U.S. oil industry association, reported Tuesday that commercial crude inventories fell by about 9.2 million barrels for the week ended June 28.
A drop in crude inventories traditionally supports prices; but the API notes at the same time an increase of 2.5 million barrels for gasoline last week.
The weekly report from the US Energy Information Administration (EIA) on the state of oil stocks is expected on Wednesday.
Other recent figures counterbalance each other, note DNB analysts: thus, while “Russian oil exports returned to positive territory over a year after several months of decline”, “oil exports from the main producers of the OPEC+ alliance (the Organization of the Petroleum Exporting Countries and its allies) in the Middle East fell in June”.
Finally, “we expect that the demand for gasoline in the United States will reach a peak this week with travel for Independence Day” on Thursday, adds John Plassard, analyst at Mirabaud.