“There’s a little bit of uncertainty around Hurricane Irma and the impact it’s going to have,” said Daniel Hynes, a Sydney-based analyst at Australia & New Zealand Banking Group Ltd. “That’s resulting in price remaining stuck around current levels. We are expecting prices to push up into the high $50 by the end of the year, probably not breaching 60 till early next year.”
Oil held gains to near $48 a barrel as Hurricane Irma weakened further after moving inland and as Gulf Coast refining continued to recover following two strikers from Harvey.
Futures were little changed in New York after rising 1.2% on Monday. Irma has softened to a tropical depression as it moves north after dumping heavy rain across Florida and cutting power to millions of people. Meanwhile, refiners closed by Hurricane Harvey more than two weeks ago continue to restart, including the nation’s largest, operated by Motiva Enterprises LLC.
Crude oil prices edged lower on Tuesday, as investors looked ahead to the Organization of Petroleum Exporting Countries’ monthly report to assess global supply and demand levels.
The data will give traders a better picture of whether a global rebalancing is taking place in the oil market.
Market players will also focus on weekly data from the U.S. on stockpiles of crude and refined products to weigh what the impact of recent storm activity was on supply and demand.
Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock gain of around 2.3 million barrels.