• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 3 days How Far Have We Really Gotten With Alternative Energy
  • 8 days By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 3 days Solid State Lithium Battery Bank
  • 2 days Bad news for e-cars keeps coming
  • 14 days The United States produced more crude oil than any nation, at any time.
  • 15 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
China's Crude Oil Imports Slump 11% in June

China's Crude Oil Imports Slump 11% in June

China's crude oil imports declined…

Economic Data is Driving Oil Price Movements

Economic Data is Driving Oil Price Movements

Oil prices experience weekly decline…

The Dramatic Fall of Mexico’s Oil Giant

The Dramatic Fall of Mexico’s Oil Giant

Mexico's state-owned oil company, Pemex,…



The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

WTI Crude Soars to Highest Level Since April on Demand Optimism, Hurricane Beryl

Hurricane Season

Hurricane Beryl strengthened overnight to a powerful Category 5 storm as it churned in the Caribbean Sea. The Cat. 5 storm is the earliest on record in the Atlantic hurricane season and has caused concern among energy traders about potential Gulf Coast disruptions. 

On Monday morning, Beryl made landfall on Grenada's Carriacou Island in the Caribbean Sea with winds around 150 mph. According to NOAA data dating back to 1851, this is the strongest known storm to traverse the Grenadines area.

Beryl's arrival marks an early start to what some meteorologists had said would be an active hurricane season. The storm's intensity has spooked energy traders, sending West Texas Intermediate (occasionally called Texas Light Sweet) to two-month highs on Monday.

Bloomberg noted, "Oil futures rose Tuesday, trading at their highest since late April, with gains tied to expectations for heavy travel around the Independence Day holiday and concerns that powerful Hurricane Beryl could later cause disruptions to offshore crude production in the Gulf of Mexico." 

Senior analyst Ipek Ozkardeskaya from Swissquote Bank, in a note to clients, emphasized that while Beryl may not immediately impact operations in the Gulf of Mexico, it could potentially cause disruptions later in the week.

Computer models show the storm making landfall on or around Mexico's Yucatan Peninsula around Friday morning and possibly curving north towards the US Gulf Coast afterward.

Related: U.S. Energy Production Chalks Up Another Record

A combination of tensions in the Middle East, robust demand ahead of July 4, a big short squeeze, and a rapid start to the Atlantic hurricane season are some factors driving WTI higher, up 10% since April 26.

As we predicted on June 6, an active Atlantic hurricane season with storms like Beryl could potentially disrupt major US Gulf Coast refineries. This disruption could drive prices at the gas pump to the politically sensitive $4-a-gallon level for the Biden administration ahead of the presidential elections this fall.

 Queue up more SPR dumps...

By Zerohedge.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • George Doolittle on July 02 2024 said:
    As prices soar consumers buy moar! You should too! Drink gasoline! Diesel fuel it's what's for dinner!

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News