Crude oil prices rose on Wednesday as concerns about the potential impact of Tropical Storm Francine on oil supplies outweighed worries about demand.

Brent crude prices rose 0.6 percent (39 cents) to $69.58 a barrel, while U.S. crude futures rose 0.7 percent (44 cents) to $66.19 a barrel.

On Tuesday, both of these benchmarks fell by about $3, with Brent crude prices falling to their lowest level since December 2021 and WTI oil hitting a low since May 2023, after OPEC+ cut its demand forecasts for this year and 2025.

NS Trading President Hiroyuki Kikukawa said, “Investors adjusted their positions after Tuesday's sharp decline.” He noted, “The rebound in oil prices was also driven by concerns that storms could disrupt supply, with some production facilities already shut down.” He predicted that the market will continue to be pessimistic due to concerns about falling global demand.

According to U.S. officials, many Louisiana residents have begun evacuating to safe areas due to Tropical Storm Francine, while oil and gas companies have suspended operations in the Gulf of Mexico. The U.S. Bureau of Safety and Environmental Enforcement (BSEE) reported that the hurricane will cause about 24 percent of U.S. oil production and 26 percent of natural gas production in the Gulf of Mexico to be shut down.

In its monthly report released on Tuesday, OPEC forecast global oil consumption to increase by 2.03 million barrels per day (bpd) in 2024, down from last month's forecast of 2.11 million bpd. opec also revised its global demand growth forecast for 2025 to 1.74 million bpd, from 1.78 million bpd.

For its part, the U.S. Energy Information Administration (EIA) warned that global oil demand is expected to hit a new high this year, but production growth will be lower than previously expected. Meanwhile, China's daily crude imports rose to the highest level in a year last month, according to customs statistics, as lower crude prices and higher refining margins pushed a modest recovery.