Thu Sep 12 01:40:18 UTC 2024: ## Oil Prices Rebound on Hurricane Concerns, But Demand Worries Linger
**New York, NY -** Oil prices climbed in early US trading on Thursday, fueled by concerns over potential supply disruptions caused by Hurricane Francine. However, the rebound was tempered by continued worries over weakening global crude demand, especially in key importer China.
Hurricane Francine, which made landfall in Louisiana on Wednesday, forced several oil firms in the Gulf of Mexico to limit or suspend operations. This anticipated supply squeeze helped crude prices rebound from near three-year lows reached earlier this week.
Despite the initial surge, the rally appeared to be losing momentum as government data revealed a larger-than-expected increase in gasoline and distillate stockpiles in the US. This indicated a potential cooling of fuel demand as the summer travel season ends.
Further dampening the outlook for oil was a monthly report from the International Energy Agency, which slashed its full-year oil demand growth forecast by 7.2% to 900,000 barrels per day. The IEA cited sluggish demand in China as a key factor in the revision.
The Organization of the Petroleum Exporting Countries (OPEC) had also recently cut its forecast for oil demand growth in 2024 and 2025, expressing similar concerns about China. Weak economic data from the world’s second-largest economy, particularly its slower-than-expected import growth in August, added to the anxieties surrounding oil this week.
The dollar’s strength, driven by stronger-than-expected US inflation data, further weighed on crude prices. The data sparked bets on a smaller interest rate cut by the Federal Reserve in September, supporting the greenback.
Brent oil futures expiring in November rose 0.6% to $71.06 a barrel, while West Texas Intermediate crude futures climbed 0.8% to $67.84 per barrel by 10:00 ET.
First Piper 