Oil prices rise on supply concerns, Hurricane Rafael impact

Oil prices rose slightly on Thursday after a wave of selling, as risks to oil supplies due to weather factors raised investor concerns, despite the impact of the strong dollar and lower oil imports in China.

Brent crude rose by 29 cents, or 0.39%, to reach $75.21 a barrel, while US West Texas Intermediate crude rose by 18 cents, or 0.25%, to record $71.87.

In a related context, the US Energy Information Administration reported that crude inventories in the United States rose by 2.1 million barrels, to reach 427.7 million barrels during the week ending November 1, exceeding expectations that indicated an increase of 1.1 million barrels.

On the other hand, data released today showed a decline in China’s crude oil imports, as they recorded a 9% decline in October, which is the sixth consecutive monthly decline, as a result of the shutdown of one of the government refining facilities, which reduced demand from independent refineries.

In North America, Category 3 storm Rafael shut down about 17% of Gulf of Mexico crude oil production, or 304,418 barrels per day, adding pressure to supply in the markets.