Crude oil prices reached its highest level since months ago supported by OPEC’s oil deal, a sharp decline in U.S. crude oil stockpiles, and anticipations of a negative impact of Hurricane Matthew on crude oil supply. OPEC’s oil deal has driven oil prices above $50/bbl earlier in the week. However, by Wednesday, oil prices were supported more by the news of a sharp drop in U.S. crude oil stockpiles which declined by 3 million bbl according to EIA.
Brent Crude Oil Price Today
And today, oil prices are supported by anticipations of a negative impact of Hurricane Matthew on crude oil supply. Traders are anticipating a potential storm-related supply disruption in the Southeastern U.S. as result of Hurricane Matthew which is hours away from hitting Florida’s east coast.
Hurricane Matthew is estimated to be the most powerful storm to hit the Caribbean region in the last decade. It is expected that Matthew will bring destructive hurricane conditions to eastern Florida, the Georgia coast and coastal South Carolina which could contribute further to overall declines in the U.S. crude oil inventory levels.
On the anticipation of negative impact of Hurricane Matthew on U.S. crude oil supply, oil prices rose more than 1 precent today. Brent crude futures rose by 1.3 percent, to $52.60 per barrel. WTI futures were also up by 1.2 percent to $50.44 a barrel. Both Brent and WTI are well above $50/bbl this week, and it is expected to continue rising, reaching new highs.
