Oil prices fall following North Korea’s hydrogen bomb test
Oil prices have dropped after reports of a powerful hydrogen bomb test conducted by North Korea prompted traders to shift their investment to gold futures, a more stable commodity.
Following the test, many traders began to shift money out of oil, which is generally regarded as a high-risk market.
International benchmark Brent crude futures LCOc1 fell by 51 cents to $52.24 per barrel, dropping by nearly 1% from its last close, while the US West Texas Intermediate (WTI) Clc1 were nearly stable at $47.28 a barrel, reported Reuters.
However, US crude prices were stable due to the ongoing disruption in oil production in the aftermath of storm Harvey.
According to the Federal Bureau of Safety and Environmental Enforcement, nearly 96,000bpd of output from the US Gulf of Mexico was halted.
Refineries are gradually resuming production, although analysts predict it may take months for the US petroleum industry to completely recover from the effects of Harvey.
Storm Harvey hit the US states of Texas and Louisiana, halting nearly a quarter of domestic refining activity that caused a sudden surge in gasoline prices, according to the news agency.