Oil futures jumped by a dollar in early trading on Monday as a potential hurricane system approached the U.S. Gulf Coast, and as markets recovered from a selloff following weaker-than-expected U.S. jobs data on Friday.
West Texas Intermediate crude futures rose $1, or 1.48%, to $68.67 a barrel by 0146 GMT. Brent crude futures were up 99 cents, or 1.39%, at $72.05 a barrel. Analysts said the bounce was in part a reaction to a potential hurricane in the U.S. Gulf Coast.
A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said on Sunday.
The U.S. Gulf Coast accounts for some 60% of U.S. refining capacity.
“Sentiment recovered somewhat from last week’s selloff,” said independent market analyst Tina Teng. At the Friday close, Brent had dropped 10% on the week to the lowest level since December 2021, while WTI fell 8% to its lowest close since June 2023.
