Oil Prices Continue Rally, Capping a Volatile Week
OIL & GAS

Oil Prices Continue Rally, Capping a Volatile Week

Oil prices continued their rally, which was initiated by output disruptions in the U.S. Gulf of Mexico. These disruptions were caused by Hurricane Francine, which led to the evacuation of production platforms before the hurricane reached the Louisiana coast.

Brent crude futures increased by 34 cents, or 0.5 per cent, reaching $72.31 per barrel as of 0016 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents, or 0.6 per cent, to $69.35 per barrel.

If these gains are sustained, both benchmarks are expected to break a streak of weekly declines, despite a challenging start that saw Brent crude dip below $70 per barrel for the first time since late 2021. At the current levels, Brent crude is projected to see a weekly increase of approximately 1.7 per cent, while WTI is anticipated to gain over 2 per cent.

Oil producers were assessing damage and conducting safety checks on Thursday in preparation for resuming operations in the U.S. Gulf of Mexico. Estimates of supply loss due to Francine were emerging. UBS analysts forecasted a decline in regional output in September by 50,000 barrels per day (bpd) compared to the previous month, while FGE analysts predicted a 60,000 bpd decrease to 1.69 million bpd.

Official data indicated that nearly 42 per cent of the region's oil output was shut in as of Thursday.

This supply shock contributed to a recovery in oil prices from a sharp selloff earlier in the week, which had seen benchmarks fall to multi-year lows due to demand concerns.

Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, attributing the revision to economic challenges in China, the world’s largest oil importer. The shift towards lower-carbon fuels was also noted as a factor affecting China's oil demand, according to speakers at the APPEC conference. Customs data released showed that China's crude oil imports averaged 3.1 per cent lower from January to August this year compared to the same period last year.

The 14th RAHSTA Expo, part of the India Construction Festival, will be held on October 9 and 10, 2024, at the Jio Convention Centre in Mumbai. For more details, visit: https://rahstaexpo.com

Oil prices continued their rally, which was initiated by output disruptions in the U.S. Gulf of Mexico. These disruptions were caused by Hurricane Francine, which led to the evacuation of production platforms before the hurricane reached the Louisiana coast. Brent crude futures increased by 34 cents, or 0.5 per cent, reaching $72.31 per barrel as of 0016 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 38 cents, or 0.6 per cent, to $69.35 per barrel. If these gains are sustained, both benchmarks are expected to break a streak of weekly declines, despite a challenging start that saw Brent crude dip below $70 per barrel for the first time since late 2021. At the current levels, Brent crude is projected to see a weekly increase of approximately 1.7 per cent, while WTI is anticipated to gain over 2 per cent. Oil producers were assessing damage and conducting safety checks on Thursday in preparation for resuming operations in the U.S. Gulf of Mexico. Estimates of supply loss due to Francine were emerging. UBS analysts forecasted a decline in regional output in September by 50,000 barrels per day (bpd) compared to the previous month, while FGE analysts predicted a 60,000 bpd decrease to 1.69 million bpd. Official data indicated that nearly 42 per cent of the region's oil output was shut in as of Thursday. This supply shock contributed to a recovery in oil prices from a sharp selloff earlier in the week, which had seen benchmarks fall to multi-year lows due to demand concerns. Both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, attributing the revision to economic challenges in China, the world’s largest oil importer. The shift towards lower-carbon fuels was also noted as a factor affecting China's oil demand, according to speakers at the APPEC conference. Customs data released showed that China's crude oil imports averaged 3.1 per cent lower from January to August this year compared to the same period last year.

Next Story
Infrastructure Urban

India, US to promote sustainable aviation fuel and hydrogen in buses

India and the United States have agreed to promote sustainable aviation fuel (SAF), electrification of medium and heavy-duty vehicles, and the use of hydrogen in buses, tractors, and heavy equipment. This decision came during the Strategic Clean Energy Partnership (SCEP) dialogue between US Energy Secretary Jennifer Granholm and Indian Minister of Petroleum and Natural Gas Hardeep Singh Puri in Washington, DC. Both nations also encouraged increased investments in each other's clean energy markets. The joint statement emphasised the importance of a "just, orderly, and sustainable energy trans..

Next Story
Infrastructure Transport

Tuticorin Airport upgradation set for December completion

Tuticorin Airport in Tamil Nadu is undergoing a significant upgrade, with an expected completion date in December 2024. The project, valued at Rs 3.81billion, is being carried out by the Airports Authority of India (AAI) and involves the extension of the runway to accommodate A-321 type aircraft, construction of a new apron, a new terminal building, a technical block with a control tower, and a new fire station. The new terminal building, covering 17,500 square meters, will significantly enhance the airport's capacity, enabling it to serve 1,440 passengers during peak hours and handle up to 2 ..

Next Story
Infrastructure Transport

Airfare hike not tied to increased airport charges; ACI

The Airports Council International (ACI) stated that rising airfares are not linked to increased airport charges. Airport charges are crucial for infrastructure development within the commercial aviation ecosystem, but they remain a minimal part of the overall airfare. Stefano Baronci, Director General of ACI Asia Pacific & Middle East, emphasized that airports are infrastructure-intensive businesses, with costs dominated by maintaining essential infrastructure such as runways, taxiways, aprons, and terminal buildings. He noted that neglecting the capital expenditure needed to support future g..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000