On Wednesday, the global crude oil market saw another rise, mainly affected by Hurricane Francine in the Gulf of Mexico. The hurricane has approached the coast of Louisiana, forcing several oil companies to suspend production, raising market concerns about supply disruptions. The Gulf of Mexico accounts for about 15% of U.S. crude oil production, so any production interruption can impact global oil prices.
Under the supply pressure brought by the hurricane, WTI crude oil futures rose by $1.56, or 2.37%, closing at $67.31 per barrel; Brent crude oil futures rose by $1.42, or 2.05%, closing at $70.61 per barrel. INE crude oil futures also rose by 0.88%, closing at 504.8 yuan.
Besides weather factors, the market is closely watching the latest crude oil inventory report released by the U.S. Energy Information Administration (EIA). The data shows that during the week ending September 6, U.S. crude oil inventories changed little, but crude oil inventories in Cushing, Oklahoma, significantly decreased by 1.704 million barrels, indicating tight U.S. crude oil supply.
Market sentiment was also driven by macroeconomic data. Following the release of U.S. August CPI data, traders reduced their expectations of future interest rate cuts by the Federal Reserve, as the core inflation rate rose, lowering the likelihood of a rate cut. The dollar index briefly rebounded but then fell back, alleviating global recession fears, which in turn boosted stock markets and commodities, benefiting crude oil prices.
Additionally, former U.S. President Trump recently expressed his desire to repeal the Inflation Reduction Act in a debate, planning to increase U.S. oil and gas production. This statement has once again drawn market attention to future energy policies.
Although uncertainties remain in the global economic outlook, the hurricane, inventory reduction, and macroeconomic data have maintained a positive market outlook on crude oil prices. Investors need to closely monitor future supply chain changes and U.S. policy trends to grasp market trends.
