Oil prices saw a decline of more than 1% as the risk posed by Hurricane Rafael receded. The storm, which had initially raised concerns over potential disruptions in oil production and refinery activities, began to lose strength, easing fears of a supply shortage. As a result, crude futures fell, with Brent and West Texas Intermediate (WTI) benchmarks experiencing notable losses.
The drop in prices also comes amid broader concerns about global economic growth and its impact on oil demand. Analysts have been monitoring these factors closely, with fluctuations in the energy market continuing to be driven by geopolitical uncertainties and weather-related events like hurricanes.
While Hurricane Rafael's threat subsided, traders remain cautious, aware of the ongoing volatility in the oil markets. Despite the dip, oil prices remain elevated compared to historical levels, driven by underlying factors such as geopolitical tensions and the ongoing energy transition.
