Oil drops as Hurricane Rafael likely to start weakening

Oil drilling rigs

Oil prices fell on Friday as the US authorities forecast the Hurricane Rafael to start weakening as of today. Investors are also assessing global supply and demand prospects in light of Trump administration policies and the slowdown in the Chinese economy.

Brent crude futures for January delivery dropped 0.54%, or $0.41, to $75.22 a barrel, at 9:09 am Makkah time.

Similarly, New York Mercantile Exchange (NYMEX) futures for December delivery fell 0.65%, or $0.47, to $71.89 per barrel.

Hurricane Rafael, which has caused 391,214 barrels per day of US crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from US fields while forecast to weaken from Friday and through the weekend, the U.S. National Hurricane Center said.

Saudi Arabia, the world’s largest crude exporter, raised prices for all crude oil grades to Asia, in line with forecasts.

US oil rig count rose two units to 508 in the week ended April 5, General Electric Co.’s Baker Hughes energy services firm said in its report on Friday.

Gas rig count fell by two to 110, the lowest level since the week ended Jan. 14, 2022.