Investing.com– Oil prices retreated Tuesday on easing concerns of a hit to U.S supply from Hurricane Beryl.
At 08:25 ET (12:25 GMT), slipped 0.4% to $85.40 a barrel, while fell 0.6% to $81.84 a barrel.
Texas oil infrastructure recovers from Beryl
Hurricane Beryl made landfall in Texas on Monday, knocking out power across a large swathe of the state while also causing disruptions in the state’s oil industry.
However, Oil and gas companies were seen quickly restarting operations on Tuesday, and its impact on oil and gas production is expected to be minor.
On Tuesday, ports were set to reopen, and some producers and facilities were ramping up output after preventively cutting down processing.
“Early indications suggest that most energy infrastructure has come through unscathed,” said analysts at ING, in a note. “Some refineries, offshore oil and gas platforms, ports and LNG facilities were shut as a precaution. Some of this infrastructure is already resuming operations, such as the Port of Corpus Christi – a key export hub for the US.”
Gaza ceasefire chatter dents oil prices
Crude prices fell sharply on Monday as a slew of media reports marked some progress in ceasefire talks between Israel and Hamas.
Hamas was seen making several major concessions last week to meet a ceasefire with Israel. But Israel kept up its assault on Gaza, carrying out new strikes on Monday.
Hamas leaders said that continued aggression by Israel could jeopardize ceasefire negotiations.
The U.S. was also seen pressing Israel to reach a ceasefire. But Prime Minister Benjamin Netanyahu insisted that any ceasefire should allow Israel to keep fighting until its war objectives were met.
Chinese economic data to offer more cues
The market’s focus this week was also on a slew of economic signals from China, which are set to offer more cues on the world’s biggest oil importer.
Chinese and readings are due through the week, and are likely to tie into the outlook for Chinese demand.
Concerns over a potential trade war between China and the West also remained in play, after the European Union imposed steep tariffs on imports of Chinese electric vehicles.
Additionally, the releases its weekly forecast of U.S. crude inventories later in the session, and as expected to show a draw during the summer driving season.
(Ambar Warrick contributed to this article.)
