Oil Prices Continue Rally, Capping a Volatile Week
OIL & GAS

Oil Prices Continue Rally, Capping a Volatile Week

Oil prices continued their rally, which was initiated by output disruptions in the U.S. Gulf of Mexico. These disruptions were caused by Hurricane Francine, which led to the evacuation of production platforms before the hurricane reached the Louisiana coast.

Brent crude futures increased by 34 cents, or 0.5 per cent, reaching $72.31 per barrel as of 0016 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents, or 0.6 per cent, to $69.35 per barrel.

If these gains are sustained, both benchmarks are expected to break a streak of weekly declines, despite a challenging start that saw Brent crude dip below $70 per barrel for the first time since late 2021. At the current levels, Brent crude is projected to see a weekly increase of approximately 1.7 per cent, while WTI is anticipated to gain over 2 per cent.

Oil producers were assessing damage and conducting safety checks on Thursday in preparation for resuming operations in the U.S. Gulf of Mexico. Estimates of supply loss due to Francine were emerging. UBS analysts forecasted a decline in regional output in September by 50,000 barrels per day (bpd) compared to the previous month, while FGE analysts predicted a 60,000 bpd decrease to 1.69 million bpd.

Official data indicated that nearly 42 per cent of the region's oil output was shut in as of Thursday.

This supply shock contributed to a recovery in oil prices from a sharp selloff earlier in the week, which had seen benchmarks fall to multi-year lows due to demand concerns.

Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, attributing the revision to economic challenges in China, the world’s largest oil importer. The shift towards lower-carbon fuels was also noted as a factor affecting China's oil demand, according to speakers at the APPEC conference. Customs data released showed that China's crude oil imports averaged 3.1 per cent lower from January to August this year compared to the same period last year.

Oil prices continued their rally, which was initiated by output disruptions in the U.S. Gulf of Mexico. These disruptions were caused by Hurricane Francine, which led to the evacuation of production platforms before the hurricane reached the Louisiana coast. Brent crude futures increased by 34 cents, or 0.5 per cent, reaching $72.31 per barrel as of 0016 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents, or 0.6 per cent, to $69.35 per barrel. If these gains are sustained, both benchmarks are expected to break a streak of weekly declines, despite a challenging start that saw Brent crude dip below $70 per barrel for the first time since late 2021. At the current levels, Brent crude is projected to see a weekly increase of approximately 1.7 per cent, while WTI is anticipated to gain over 2 per cent. Oil producers were assessing damage and conducting safety checks on Thursday in preparation for resuming operations in the U.S. Gulf of Mexico. Estimates of supply loss due to Francine were emerging. UBS analysts forecasted a decline in regional output in September by 50,000 barrels per day (bpd) compared to the previous month, while FGE analysts predicted a 60,000 bpd decrease to 1.69 million bpd. Official data indicated that nearly 42 per cent of the region's oil output was shut in as of Thursday. This supply shock contributed to a recovery in oil prices from a sharp selloff earlier in the week, which had seen benchmarks fall to multi-year lows due to demand concerns. Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, attributing the revision to economic challenges in China, the world’s largest oil importer. The shift towards lower-carbon fuels was also noted as a factor affecting China's oil demand, according to speakers at the APPEC conference. Customs data released showed that China's crude oil imports averaged 3.1 per cent lower from January to August this year compared to the same period last year.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?