Oil futures jumped by about 1% on Monday, as a potential hurricane approaching the U.S. Gulf Coast helped oil prices recover from some of the heavy losses experienced last week.

• Brent crude rose by 67 cents, or 0.94%, to $71.73 a barrel, while West Texas Intermediate crude futures increased by 68 cents, or 1%, to $68.35 a barrel.

• Brent crude prices had fallen during each of the past six trading sessions, dropping by more than 11%, or nearly $9 a barrel, to record their lowest closing price since December 2021 on Friday.

• Monday’s rebound was partly in response to a potential hurricane near the U.S. Gulf Coast.

• The U.S. National Hurricane Center forecasted on Sunday that a weather system in the southwestern Gulf of Mexico could become a hurricane before reaching the northwestern U.S. Gulf Coast. The U.S. Gulf Coast accounts for about 60% of the country’s refining capacity.

• A slight recovery in prices began this morning due to hurricane warnings that might threaten the U.S. Gulf Coast, but the broader conversation remains focused on where demand will come from and what OPEC+ can do.

• The OPEC+ oil producers' group agreed last week to delay a planned production increase of 180,000 barrels per day for October by two months, in response to falling oil prices.

• Oil prices may range between $60 and $70 a barrel due to weak Chinese demand and persistent oversupply, according to statements by executives at the APPEC conference in Singapore on Monday.

• Meanwhile, Morgan Stanley lowered its forecast for Brent crude prices for the fourth quarter to $75 a barrel from $80, adding that prices are likely to remain at that level unless demand weakens further.

• Refining margins in Asia have slipped to their lowest seasonal levels since 2020.

• The U.S. jobs report on Friday showed that non-farm payrolls for August increased by less than market watchers had expected.

• A decline in the unemployment rate could slow the pace at which the Federal Reserve cuts interest rates. Lower interest rates typically increase oil demand by spurring economic growth.

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