Oil futures rose by a dollar on Monday as a potential hurricane system neared the U.S. Gulf Coast, and markets rebounded from last week’s selloff triggered by weak U.S. jobs data. West Texas Intermediate (WTI) crude futures increased by 1.48%, reaching $68.67 per barrel, while Brent crude rose by 1.39% to $72.05 per barrel.
The U.S. Gulf Coast, responsible for 60% of the country’s refining capacity, is at risk as the National Hurricane Center forecasts the weather system will strengthen into a hurricane. This, alongside a partial recovery in market sentiment, contributed to the rise.
However, weak demand, particularly from Asia, continues to limit price gains, with refining margins at their lowest seasonal levels since 2020.