Oil prices remained largely unchanged as investors closely monitored potential energy supply disruptions due to the largest ports in Texas shutting down in anticipation of Tropical Storm Beryl.
The storm, forecasted to intensify into a hurricane, is expected to make landfall on Monday.
Brent crude oil, against which Nigerian oil is priced, rose by 11 cents, or 0.1% to $86.65 a barrel following a decrease of 89 cents on Friday.
U.S. West Texas Intermediate (WTI) crude was down by 8 cents to $83.08 a barrel.
The precautionary closure of key ports including Corpus Christi, Houston, Galveston, Freeport, and Texas City on Sunday is aimed at mitigating the impact of Tropical Storm Beryl.
The storm is projected to grow into a Category 2 hurricane as it approaches the central Texas coast, between Galveston and Corpus Christi.
These closures could lead to a temporary halt in crude and liquefied natural gas exports, oil shipments to refineries, and motor fuel deliveries from those plants.
IG analyst Tony Sycamore, based in Sydney, highlighted the likelihood of storm surge and power outages affecting the region.
He also noted the potential for U.S. data to reveal another substantial weekly draw in oil inventories amid the peak driving season, which could support oil prices.
Last week, WTI saw a 2.1% increase after the Energy Information Administration reported a decline in stockpiles of crude and refined products for the week ending June 28.
The number of operating oil rigs in the U.S. remained unchanged at 479, the lowest count since December 2021, according to Baker Hughes’ weekly report.
Oil prices were further buoyed by optimism regarding potential interest rate cuts, following U.S. data showing easing inflation and slowing job growth.
Lower interest rates can stimulate economic activity and, in turn, increase crude oil demand.
Investors are also keeping an eye on geopolitical developments, with elections in the UK, France, and Iran potentially influencing energy policies and market dynamics.
As Texas braces for the impact of Tropical Storm Beryl, the energy market remains cautious. The storm’s progression and its effects on major ports will be closely watched, with potential ramifications for both regional and global oil supply chains.