Along with the potential disruptions to oil pipelines, the storm may also divert normal energy imports.
“I think the hurricane will impact oil imports,” Phil Flynn, senior market analyst at the Price Futures Group, told DTN.
Furthermore, the gasoline market is finding support from renewed optimism over an Organization of Petroleum Exporting Countries production deal. Speculators expect OPEC to limit output at its policy meeting in Vienna on November 30, Reuters reports.
SEE MORE: Oil, Energy ETFs Surge as OPEC Cuts Output
“While many still express skepticism that this agreement will reduce supply, they are missing the point,” Flynn told the Wall Street Journal. “For the first time in almost 8 years the cartel has agreed to limit production. … we will see the cartel once again have the ability to manipulate prices by withholding supply.”
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