Crude oil futures fell Monday after Hurricane Beryl slammed into Texas and weakened to a tropical storm. It had little impact on refining operations and restricted impact on offshore production.

While Beryl is unlikely to cause significant disruptions to fuel supplies, Supply shortages, hefty rains and flooding in Houston and elsewhere in Texas could reduce demand for fuel as travel is challenging.

“Hedges erected prior to Beryl’s landfall have been removed as oil production facilities in the affected areas sustained relatively little damage,” Gelber and Associates said, according to Reuters.

“Much of today’s price decline looked like a classic buy the rumor/sell the news scenario,” Ritterbusch analysts said, referring to Beryl’s impact, according to Dow Jones.

Oil is also starting the week on a high downward price pressure The decision comes amid optimism over a potential ceasefire in Israel’s war with Hamas in the Gaza Strip, Ritterbusch said, and negotiations are showing some progress.

Oil bulls “have been emboldened by the threat of Hurricane Beryl, which is amplifying supply risks in the U.S.,” but prices “have the potential to rise further if the seasonal increase in U.S. demand during the summer is in line with expectations,” said Han Tan, chief market analyst at Exinity Market watch.

Nymex (CL1:COM) Crude Oil Deliveries Completed for August -1% to USD 82.33/bbl, and September Brent crude (CO1:COM) closed -0.9% to $85.75/bbl.

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Oil demand is expected to decline next year BMI analysts in their latest analysis, according to Dow Jones, said the reason is a supply surplus resulting from the activity of non-OPEC countries.

The research firm said production in non-OPEC countries excluding the United States is expected to grow by an average annual rate of 858,000 barrels per day this year and 940,000 barrels per day next year, more than any two-year period of growth since 2005.

“The growth is being driven by conventional projects with long lead times and payback periods that are generally insensitive to short-term oil price movements,” BMI wrote. “As such, barring project delays, these barrels will be brought online within the next 18 months, regardless of market conditions.”

BMI forecasts the price of Brent crude oil will fall to $82 a barrel next year, but the company is considering revising its estimate downward.