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WTI crude oil prices fell further in the first week of September to $67.67 per barrel, its lowest close since 2021 owing to concerns about a potential increase in oil supply due to the possible resolution of the Libyan political dispute, as well as weak factory activity in major oil-consuming countries. Despite OPEC's decision to maintain production cuts and a drop in U.S. crude stocks to a one-year low of 418.3 million barrels, prices struggled to gain momentum. Today, however, WTI crude oil prices have rebounded, trading 1.4% higher at $68.60 per barrel due to fears of a hurricane in the Gulf Coast, which is responsible for about 60% of U.S. refining capacity. The U.S. National Hurricane Center has forecast that a weather system in the southwestern Gulf of Mexico is likely to strengthen into a hurricane before reaching the northwestern U.S. Gulf Coast. Also, oil market participants are awaiting monthly outlook reports from OPEC, the Energy Information Administration, and the International Energy Agency, due this week.

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