Oil prices held steady on Wednesday as fears of supply disruptions from Hurricane Beryl diminished. At 10:25 GMT (12:25 in Paris), Brent crude for September delivery was nearly unchanged at $86.24 per barrel.
Meanwhile, the West Texas Intermediate (WTI) for August delivery dipped slightly by 0.07% to $82.75 per barrel.
Impact of Hurricane Beryl on Prices
The previous day, oil prices had surged after Hurricane Beryl was temporarily categorized as a Category 5 storm, with winds exceeding 252 km/h, posing “potentially catastrophic” threats. This early season hurricane was downgraded to Category 4 by Tuesday afternoon.
“The storm-related risk premium has significantly eroded,” said John Evans, an analyst at PVM Energy. Forecasts now suggest that Beryl will weaken to a mere storm before reaching the Gulf of Mexico, thereby reducing potential damage to Mexican or American oil infrastructure.
Beryl’s Path and Impact
On Wednesday, Beryl was expected to hit Jamaica and then the Cayman Islands, after already causing at least seven fatalities and significant destruction in the southeastern Caribbean.
In early trading, prices received slight support after the American Petroleum Institute (API) reported a decrease in commercial crude inventories of about 9.2 million barrels for the week ending June 28.
A drop in crude stockpiles generally supports prices; however, API also noted a 2.5 million barrel increase in gasoline inventories last week.
Upcoming EIA Report
The U.S. Energy Information Administration (EIA) was scheduled to release its weekly petroleum status report on Wednesday.
Analysts from DNB pointed out contrasting data, noting that “Russian oil exports have turned positive year-on-year after months of decline,” while “exports from major OPEC+ producers in the Middle East fell in June.”
Independence Day Demand Surge
Finally, John Plassard, an analyst at Mirabaud, mentioned that “gasoline demand in the United States is expected to peak this week due to travel for Independence Day celebrations on Thursday.”