09:12 AM EDT, 07/09/2024 (MT Newswires) -- Oil prices weakened for a third-straight session early on Tuesday as demand concerns continue while Hurricane Beryl passed over the Texas refining hub on Monday with little damage to refineries and ports.

West Texas Intermediate crude oil for August delivery was last seen down US$0.55 to US$81.78 per barrel, while September Brent crude was down US$0.50 to US$85.25.

The drop comes after Beryl hit the Houston area at Category 1 strength. While refineries and ports were shut as the storm passed over, there was little damage to the region's cluster of refineries, with Reuters reporting most of the facilities have begun restarting operations. The shutdowns had little affect on oil or refined product pricing.

"Hurricane Beryl has not only dumped water on all in its path, but it has also quenched some of the bullish fervour that was slowly developing within the oil fraternity. The Port of Houston, pipelines and other associated infrastructure have been taken offline, but the market reaction is curiously muted," PVM Oil Associates noted.

Demand concerns continue despite last week's 12.2-million barrel fall in U.S. oil inventories. Even with the bullish drop, the refining sector remains weak, with BP (BP) on Tuesday warning it expects to take a charge of up to US$2 billion in its second-quarter results due to weak refining margins and the potential scaling back of refining operations of a German refinery due to weak demand.

BP's warning follows on a similar warning from Exxon Mobil (XOM), which on Monday warned weak refining margins are expected to cut its second-quarter earnings by as much at US$1.5 billion.