The port of Corpus Christi, a critical hub for oil exports, has swiftly moved into recovery mode following Tropical Storm Beryl’s passage with no significant impact reported, signaling resilience in the face of adverse weather conditions. Meanwhile, all terminals at the port of Houston will remain closed on Tuesday to assess and address any damage incurred during the storm, according to statements from port authorities.
Beryl, initially making landfall as a Category 1 hurricane in Matagorda, Texas, weakened into a tropical storm and further degraded into a tropical depression as it moved inland north of Shreveport, Louisiana, according to updates from the National Hurricane Center. Despite its downgraded status, the storm has left its mark by quelling some of the bullish sentiment that had been building within the oil markets, as noted by John Evans, an analyst at oil broker PVM.
Today’s energy prices reflect a cautious market sentiment in the wake of Beryl’s impact:
- West Texas Intermediate (WTI) crude oil for August delivery closed at $82.07 per barrel, down 26 cents or 0.32%.
- Brent crude for September delivery stood at $85.51 per barrel, down 24 cents or 0.28%.
- RBOB Gasoline for August delivery held steady at $2.53 per gallon.
- Natural Gas for August delivery rose slightly to $2.38 per thousand cubic feet.
Shell announced plans to redeploy personnel to its Perdido platform in the Gulf of Mexico following production shutdowns ahead of Beryl’s arrival. The market response to the storm has been relatively subdued, but it serves as a potential precursor for heightened activity in the ongoing hurricane season, which Colorado State University predicts to be “extremely active” with an expected total of 11 hurricanes, surpassing the long-term average.
Looking ahead, market focus turns to Wednesday’s release of U.S. crude oil inventory data, with expectations that continued draws in oil and gasoline stocks could bolster market optimism, indicating increased demand following a slow start to summer fuel consumption. Previous reports showed a significant decline of 12.2 million barrels in oil inventories and a 2.2 million barrel decrease in gasoline stocks, hinting at potential bullish momentum.
Despite varied forecasts, including Macquarie’s projection of a more modest 1.2 million barrel decline in oil inventories, market conditions suggest a cautious optimism tempered by ongoing supply dynamics and the evolving impact of weather events on energy infrastructure.