Oil prices have climbed up slightly in the wake of two raging storms in the Gulf of Mexico. A hurricane and a tropical storm have joined forces in the region and as a result more than half of the oil production has been shut down causing the oil price chart to edge up.
As the region is home to about 17% of total US oil production, the WTI oil was naturally affected as well. Namely, the WTI oil price gained 0.2% or 7 cents a barrel. And Brent crude oil price also rose roughly about 8 cents per barrel. This is only two days after both of the benchmark oil price analysis fell around 1% in connection with economic concerns.
The scale of this natural disaster, though, is by no means to be underestimated and will no doubt have a further effect on the oil chart analysis. However, how much of an effect exactly and just severely it will impact the oil price forecast for the rest of the year still remains to be seen.
On the other hand, we have growing worries about an impending second coronavirus wave also pressuring the oil analysis. And some experts even think any effects of the storms in the Gulf of Mexico on the oil price analysis September will likely be suppressed by these worries. Furthermore, the latest OPEC+ reports of oversupply are undeniably going to pressure the oil price chart analysis further, as oil producers will be forced to implement further output cuts.
Watch the full video for our take on the WTI oil price forecast and find out what the oil prices forecast next week might look like. And don’t hesitate to let us know in the comments what your take on the oil price today is.
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