Oil steady despite supply concerns in US

Oil drilling rigs

Oil held steady today, Aug. 28, despite a slowdown in drilling activity in the US as focus shifted to Tropical Storm Idalia that is likely to make landfall in Florida, disrupting supplies.

International benchmark Brent crude closed at $84.42 a barrel, while West Texas Intermediate (WTI) crude rose 0.30% to settle at $80.10 a barrel.

The dollar index, which measures its value against a basket of major currencies, was at 104.06 points at 09:56 pm Makkah time.

The US state of Florida could facing a scarcity of fuel supply as shipments decrease and demand rises in preparation for a possible evacuation due to Tropical Storm Idalia, which is expected to strengthen into a hurricane.

Last week, oil closed higher on Aug. 25 but recorded weekly losses for the second time in a row, with continued fears of weak economic momentum in China. This calls into question the extent of post-pandemic recovery in the second largest economy and

raises concerns about global demand for commodities.

Meanwhile, Baker Hughes data showed that the number of oil exploration rigs in the US decreased by eight to 512 rigs in the current week.