Hurricane Rafael Weakens, Driving Down Oil Prices

Forex - Reports indicating that Hurricane Rafael, which struck Cuba and is moving toward the United States, is beginning to weaken have led to a decrease in oil prices.

The U.S. National Hurricane Center stated that Hurricane Rafael is expected to gradually move westward over the Gulf of Mexico and away from U.S. shores, causing a halt in daily U.S. crude oil production of 391,214 barrels, with a forecast of weakening from Friday through the weekend.

Brent crude oil futures fell by 52 cents, or 0.69%, to $75.11. West Texas Intermediate crude gained 59 cents, or 0.82%, to settle at $71.77.

Analysts note that if Brent oil stays below the support level of $75.13, further declines could continue toward $74.53. Below this level, there is support at $73.71.

Resistance points for upward movements are at $76.01 and $76.30.