US Oil Prices Continue to Rise Amid Hurricane Damage... Labor Day Holiday and Oil-Producing Countries' Meeting Also Factors

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] U.S. crude oil and gasoline prices have risen further due to the aftermath of Hurricane Ida. With expectations that U.S. gasoline demand will continue ahead of the holiday, additional price increases are anticipated depending on the timing of the resumption of operations at oil-related facilities.

On the 30th (local time), October West Texas Intermediate (WTI) crude oil closed at $69.21 per barrel, up 47 cents (0.7%) on the New York Mercantile Exchange.

WTI initially fell at the opening despite Hurricane Ida causing power outages to 1 million households and significant casualties, as the damage to oil production facilities was assessed to be limited, but later turned to an upward trend.

September gasoline futures closed at $2.31 per gallon, up 4 cents (1.7%).

According to AAA, the average retail price of gasoline was $3.151 per gallon, slightly higher than the previous day's $3.148, but it is the highest Labor Day holiday price in the past seven years.

CNBC reported that gasoline prices could rise an additional 5 to 10 cents per barrel ahead of this weekend's Labor Day holiday.

WTI and gasoline futures had already risen about 10% last week due to the impact of Ida.

The upcoming OPEC Plus oil-producing countries meeting scheduled for the 1st is also expected to be an important variable for oil prices.

The U.S. Biden administration has unusually demanded an increase in production, arguing that the oil-producing countries' decision to raise output by 400,000 barrels per month since August does not help the global economic recovery, but it is widely assessed as uncertain whether the producers will accept this.