Oil prices rise with impact of Hurricane Francine, demand in focus De Investing.com

Investing.com– Oil prices rose in Asian trade on Thursday as expectations of supply disruptions from Hurricane Francine helped offset lingering concerns about slowing global crude demand.

Hurricane Francine made landfall in Louisiana on Wednesday after passing through the Gulf of Mexico, where several oil companies limited or suspended operations in the storm’s path.

Expectations of tighter supplies helped crude recover from near three-year lows hit earlier this week, although that rally now appeared to be fizzling out.

U.S. crude for November delivery rose 0.3 percent to $70.83 a barrel, while it rose 0.3 percent to $66.78 a barrel by 9:02 p.m. ET (01:02 GMT).

US inventories rise less than expected, product stocks rise

Capping crude oil’s advance was government data showing a bigger-than-expected rise in inventories in the week to September 6.

While overall growth was slightly smaller than expected, the rise in product inventories raised some concerns that US fuel demand has cooled with the end of the busy summer travel season.

The inventory data also added to concerns that a weakening US economy will lead to lower fuel consumption in the coming months. Fears of a US recession weighed heavily on oil prices in the past week.

Some stronger-than-expected data on Wednesday sparked bets on a smaller rate cut by the Federal Reserve in September. This notion boosted the dollar, which also affected crude oil prices.

The IEA report was expected after OPEC cut demand forecasts

Thursday’s focus was also on an upcoming monthly report from , for more clues about a weaker demand outlook.

The report comes just days after the Organization of the Petroleum Exporting Countries cut its forecast for oil demand growth in 2024 and 2025, citing weaker trends in major oil importer China.

Weak economic data from China added to anxiety over oil this week as the country’s total rose at a slower-than-expected pace.

While China’s oil imports rebounded sharply in August, analysts said the increase was largely fueled by weaker oil prices rather than improved demand.

Other readings from China showed the economy remained under pressure through August.