Hurricane concerns lift oil futures, pessimistic mood remains – London Business News | Londonlovesbusiness.com

Oil futures rebounded as markets reacted to risks of production disruptions by a potential hurricane system near the U.S. Gulf Coast.

The U.S. National Hurricane Centre predicted the storm may strengthen into a hurricane, heightening concerns about its impact on oil infrastructure.

These concerns helped the oil market to stabilise to a certain extent after last week’s selloff, caused by weak U.S. job data that raised fears of softer domestic demand.

However, concerns about demand remain and the market could continue to see downward pressures. In this regard, Saudi Aramco cut its October prices for Arab Light crude by 70 cents for Asian buyers.

OPEC+ is expected to increase oil production in 2025 for the first time since 2022, though production hikes were delayed due to falling prices. Concerns over weak demand in key markets like China and the U.S. continue to weigh on crude prices. As a result, traders could continue to monitor economic developments in both countries and their impact on oil demand.