International oil prices fluctuate! Trump's words affect the market, Gulf of Mexico hurricane adds another variable
Quick Look
- Hurricane Isaias moved to the northern Gulf of Mexico in the United States, and oil companies shut down more than 70% of crude oil production.
- Brent crude oil closed up 0.42% at $104.72/barrel on Friday, and WTI crude oil rose 0.39% to $91.85/barrel.
- Trump said that negotiations with Iran were fruitful and was considering suspending federal gasoline taxes.
AI-generated summary
Why It Matters
Hurricane Isaias moved to the northern Gulf of Mexico, and oil companies shut down more than 70% of crude oil production to prevent storm damage. International oil prices rose against this background, and were affected by multiple factors including Trump's negotiations with Iran, China's export policies and threats to shipping in the Strait of Hormuz.
The picture shows a satellite image on October 9, showing that Hurricane Isaias is moving in the Gulf of Mexico in the United States, approaching Alabama and Florida. (AP)
[Financial Channel/Comprehensive Report] As Hurricane Isaias moved towards the northern Gulf of Mexico, oil companies shut down more than 70% of crude oil production in U.S. waters, and international oil prices closed higher on Friday (9th).
Brent crude oil futures closed at $104.72 a barrel, up 44 cents, or 0.42%.
Please read on...
U.S. West Texas Intermediate (WTI) crude oil futures in New York closed at $91.85 a barrel, up 36 cents, or 0.39%.
Oil prices fell earlier in the day after U.S. President Donald Trump said talks between the U.S. and Iran to end the war in the Middle East were "productive." Trump also warned that he would soon announce an undisclosed diesel-related measure and said he was considering suspending the federal gasoline tax.
China, the world's largest oil importer, plans to resume exports of refined oil products after briefly suspending them during the National Day Golden Week holiday, which also puts pressure on the market. Reuters reported the latest development on Friday, citing sources.
In terms of single-week performance, both Brent crude oil and WTI crude oil prices rose.
Tamas Varga, an analyst at PVM Oil Associates, said Trump's commitment to Iran, coupled with China's resumption of refined oil exports, is driving oil prices lower.
Oil prices have been volatile this week due to heightened threats to shipping in the Persian Gulf and Strait of Hormuz. Before the outbreak of the war, the volume of oil and fuel transported through the Strait of Hormuz was equivalent to about 20% of the global total.
The war with Iran and the conflict between Russia and Ukraine have disrupted supplies of refined products such as gasoline, jet fuel and especially diesel.
Oil markets were also affected by Hurricane Isaias in the Gulf of Mexico. According to the US Marine Minerals Administration, as of Thursday (8th), local oil companies have shut down approximately 1.3 million barrels of crude oil production per day, equivalent to 62.9% of current total oil production.
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What to Watch
AI outlook — possibilities, not facts
If Hurricane Isaias makes landfall in the U.S. Gulf Coast, crude oil production shutdowns may be extended
Possible · Within days
Rising threat to shipping in Strait of Hormuz will keep oil prices volatile
Likely · Within weeks
Open Questions
- When will Hurricane Isaias make landfall and its specific path?
- Estimated recovery time for oil industry shut down facilities
- Specific content of diesel-related measures that Trump claimed were undisclosed
- The specific time and scale of China’s resumption of refined oil exports
