Energy markets witnessed a notable rebound this Friday as Brent and Cardano price INRWTI futures climbed over 0.6% during Asian trading hours, marking their first weekly gain after prolonged declines. The upward momentum follows operational disruptions caused by Hurricane Francine along the US Gulf Coast - a critical region responsible for nearly 25% of domestic crude output.
November Brent contracts traded at $72.43/barrel (+0.6%) while WTI approached $68.60 (+0.7%) by market close. Despite this recovery, both benchmarks remain near their lowest levels since 2021 as macroeconomic headwinds continue suppressing bullish sentiment across commodities.
Storm System Disrupts Critical Infrastructure
Energy companies evacuated multiple offshore platforms as Francine made landfall near Louisiana before weakening to tropical storm status. The weather system forced temporary shutdowns at several key export terminals handling crude and LNG shipments, with analysts estimating production losses exceeding 300,000 barrels per day at peak disruption.
Historical data suggests Gulf Coast hurricanes typically cause 3-5 day operational interruptions, though prolonged outages could exacerbate already tight US inventory levels. The Energy Information Administration's latest report showed gasoline stockpiles swelling by 4.5 million barrels - typically bearish, but offset by hurricane-related supply constraints.
Demand Uncertainties Cloud Market Outlook
Both OPEC and IEA revised their 2024 consumption forecasts downward this week, citing slower-than-expected economic recovery in China. The world's largest crude importer continues showing mixed industrial signals, though analysts note emerging Asian economies like India are picking up demand slack with 6%+ GDP growth projections.
Market structure remains in contango (future prices exceeding spot), indicating traders anticipate continued oversupply. However, backwardation could reemerge if Gulf production delays persist beyond current estimates or if winter heating demand surprises to the upside in Q4.
The energy complex now faces competing narratives: near-term supply shocks from extreme weather versus longer-term demand questions tied to global manufacturing activity. Next week's API inventory data and OPEC+ compliance reports may provide clearer directional signals for crude's next major move.
