74 Views

Crude oil gains in Asia with Irma impact and Chinese yuan in focus

© Reuters.  Crude gains in Asia© Reuters. Crude gains in Asia

Investing.com – Crude oil prices gained in Asia on Monday as the impact of Hurricane Irma was not as severe as expected so far, but still packed a wallop for Florida even as its intensity was downgraded and as investors eyed China crude buying trends in the wake of a strongly stronger yuan.

Hurricane Irma knocked out power to more than 2.4 million homes and businesses in Florida on Sunday, threatening millions more as it crept up the state’s west coast, and full restoration of service will take weeks, local electric utilities said.

But after Hurricane Irma hit Florida on Sunday morning as a dangerous Category 4 storm, the second highest level on the five-step Saffir-Simpson scale, it weakened to a Category 2 with maximum sustained winds of 110 miles per hour (177 kph).

The yuan gained to its highest level since May 2016 on Monday, a boon for commodity imports priced in dolalrs that are imported into China such as crude oil.

U.S. West Texas Intermediate (WTI) crude futures rose 0.67% to $47.80 a barrel. Brent crude, the benchmark for oil prices outside the U.S. gained 0.35% to $53.97 a barrel. The global benchmark closed last week with a gain of $1.03, or around 1.9%, after rising to a more than four-month high of $54.87 on Thursday.

Later this week, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to further weigh what the impact of recent storm activity was on supply and demand.

Oil traders will also focus on monthly reports from the Organization of Petroleum Exporting Counties and the International Energy Agency to assess global oil supply and demand levels. The data will give traders a better picture of whether a global rebalancing is taking place in the oil market.

Last week, oil prices tumbled on Friday, hit by concern over reduced demand as U.S. refineries saw a slow recovery from flooding due to Hurricane Harvey.

Prices were further weighed as uncertainty gripped the energy market over the potential impact of Hurricane Irma as it approached the U.S.

Two weeks after storm system Harvey knocked out roughly a quarter of U.S. oil refining capacity, refineries along the Gulf coast have been slow to restart, weighing on demand for crude oil, the primary input at refineries.

The dip in demand was reflected in a report from the Energy Information Administration (EIA) on Thursday showing crude stockpiles rose for the first time in ten weeks.

Harvey’s impact was also felt in oil production. Oilfield services firm Baker Hughes said on Friday its weekly count of oil rigs operating in the U.S. declined by 3 to 756.

But the slowdown in refining and output should be temporary.

sponsoredArticle = ‘div-gpt-ad-1466339494851-0’;

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Latest Posts

The heartwarming sight of dogs seeing their owners after a long time
Uncategorized
4455 views
Uncategorized
4455 views

The heartwarming sight of dogs seeing their owners after a long time

Editor - December 2, 2017

Our little friends can be so happy to see us again. It seems that seeing each other after a long time evokes the same feelings and emotions…

Unusual business ideas.. for the pet industry!
Uncategorized
7509 views
Uncategorized
7509 views

Unusual business ideas.. for the pet industry!

Editor - November 17, 2017

Are you an animal lover? We from Optionsuniversitystrategist sure are! It's amazing what that does for business, entire new industries are born this way. We know the…

Are you the boss at home? This little girl sure is!
Uncategorized
1188 views
Uncategorized
1188 views

Are you the boss at home? This little girl sure is!

Editor - November 14, 2017

This little girl knows exactly what she wants, do you know what you want as well? Haha what a laugh to see this little bosslady telling her…

In shedding bonds, Fed aims for boring end to crisis-era measures
Finance
78 views
Finance
78 views

In shedding bonds, Fed aims for boring end to crisis-era measures

Editor - October 25, 2017

© Reuters. The Federal Reserve building in Washington By Jonathan Spicer and Ann Saphir NEW YORK/SAN FRANCISCO (Reuters) - The U.S. Federal Reserve is set on Wednesday…

ITG’s Selway drops out of running for key SEC job
Politics
44 views
Politics
44 views

ITG’s Selway drops out of running for key SEC job

Editor - October 24, 2017

ITG's Selway drops out of running for key SEC job (Reuters) - Jamie Selway, the leading candidate to head the U.S. Securities and Exchange Commission's Division of…

Tax inversion deals saved U.S. companies $45 million on average: CBO
Stock
90 views
Stock
90 views

Tax inversion deals saved U.S. companies $45 million on average: CBO

Editor - October 24, 2017

Tax inversion deals saved U.S. companies $45 million on average: CBO WASHINGTON (Reuters) - U.S. companies that shifted their tax domiciles abroad, if only on paper, between…

Mnuchin says tax overhaul still in sight for 2017
Politics
148 views
Politics
148 views

Mnuchin says tax overhaul still in sight for 2017

Editor - October 22, 2017

2/2 © Reuters. Treasury Secretary Steven Mnuchin walks through the lobby of Trump Tower in New York 2/2 WASHINGTON (Reuters) - Comprehensive reform of the U.S. tax…

Trump’s antitrust pick meets with Elizabeth Warren: source
Politics
122 views
Politics
122 views

Trump’s antitrust pick meets with Elizabeth Warren: source

Editor - October 21, 2017

© Reuters. Senator Elizabeth Warren (D-MA) addresses the audience at the morning plenary session at the Netroots Nation conference for political progressives in Atlanta By Diane Bartz…

Japan firms see U.S., China economies expanding at a healthy clip
Stock
105 views
Stock
105 views

Japan firms see U.S., China economies expanding at a healthy clip

Editor - October 19, 2017

© Reuters. FILE PHOTO: Japan's national flag is seen in front of containers and cranes at an industrial port in Tokyo By Tetsushi Kajimoto TOKYO (Reuters) -…

Trump turns again to Democrats on debt ceiling, immigration
Politics
71 views
Politics
71 views

Trump turns again to Democrats on debt ceiling, immigration

Editor - October 19, 2017

© Reuters. Senator Susan Collins (R-ME) speaks to reporters after the Senate approved $15.25 billion in aid for areas affected by Hurricane Harvey in Washington By Richard…