Oil Futures Climb as Idalia Strengthens Into a Hurricane

Oil futures climbed on Monday as traders eyed potential disruptions to crude production in the Gulf Coast, which accounts for over 47% of total U.S. petroleum refining capacity, according to the U.S. Energy Information Administration (EIA). 

Tropical Storm Idalia strengthed into a hurricane Tuesday and is expected to make landfall in Florida by tomorrow. Idalia may produce tornadoes along the west central Florida coast today and could intensify to a Category 3 hurricane, according to the National Hurricane Center. Category 3 is considered a major hurricane with sustained winds of at...

Oil Futures Gain Following Russia's Voluntary Reduction in Oil Production Next Month 

In early action Friday, the April Brent crude oil futures contract is up by nearly 3% from Thursday’s close at $85.74 per barrel. The March West Texas Intermediate (WTI) futures contract was last trading at $79.11 per barrel, up 1.2% from yesterday's settlement price. 

Traders are digesting Russia’s recent announcement that it will voluntarily reduce its oil production by 500,000 barrels per day starting next month. The move comes in response to the recent Western price limits and bans on Moscow’s gasoline and oil products due to the war in Ukraine. 

“Russia believes that the price ceiling mechanism for the sale of Russian oil and oil products is an interference in market relations and a continuation of the destructive energy policy of the countries of the collective West,” according to a statement published on the government website.