WTI hovers around $68.00 due to supply disruptions caused by Tropical Storm Francine

• WTI price holds its position due to operations closure at Brownsville and other smaller Texas ports on Monday.
• National Hurricane Center’s data indicate that at least 125,000 barrels per day of Oil production is at risk of disruption.
• APPEC conference speakers noted that China’s sluggish economy is slowing Oil demand growth.

West Texas Intermediate (WTI) Oil price remains steady at around $68.00 per barrel during Tuesday's Asian trading session. Crude Oil prices are being bolstered by supply disruptions caused by Tropical Storm Francine. According to a note from ANZ analysts, citing data from the National Hurricane Center (NHC), "At least 125,000 barrels per day (bpd) of Oil production is at risk of disruption."

The US Coast Guard ordered the closure of all operations at Brownsville and other smaller Texas ports on Monday evening as Tropical Storm Francine swept across the Gulf of Mexico. While the port of Corpus Christi remained open, it operated under restrictions, according to Reuters.

Tropical Storm Francine is expected to strengthen into the fourth hurricane of the Atlantic season, which concludes on November 30. The National Hurricane Center predicts Francine could develop into a Category 1 hurricane, with winds reaching up to 85 mph (137 kph), before making landfall on the Louisiana coast by Wednesday evening.

Reuters reported that global commodity traders Gunvor and Trafigura expect Oil prices to range between $60 and $70 per barrel, driven by weakened Chinese demand and ongoing global oversupply. According to speakers at the APPEC conference on Monday, China’s transition toward lower-carbon fuels, combined with a sluggish economy, is slowing Oil demand growth in the world’s largest crude importer.