The price of oil jumped by 1% after a massive drop last week. The catalyst for the price increase was news about a potential hurricane approaching the U.S. Gulf Coast, which accounts for about 60% of U.S. refining capacity.
A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said.
Meanwhile, the recovery of the US currency limited the rise in oil prices. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.22% to 101.40.
Last week, the price of Brent crude fell by 9.82%, and WTI crude fell by 8%, as the weakness of the economies of China and the United States — the two largest oil consumers — increased concerns about demand. Meanwhile, last week OPEC+ agreed to postpone a planned 180,000 barrels per day production increase in October for two months in response to falling crude oil prices.
According to the updated forecasts of Morgan Stanley analysts, in the 4th quarter the price of Brent crude oil will be $75 per barrel (-$5 per barrel compared to the previous forecast). Analysts added that prices are likely to remain at this level unless demand declines further.