Oil prices showed little change on Tuesday after Hurricane Beryl hit a crucial US oil-producing hub in Texas, causing less damage than initially feared. Brent futures rose 4 cents to $85.79 a barrel by 09:22 a.m. Saudi time, while US West Texas Intermediate crude climbed 2 cents to $82.35, according to Reuters.

The hurricane's unexpected downgrading to a tropical storm after making landfall allowed much of the region's infrastructure to escape significant harm. Although oil refining activity temporarily slowed and some production sites were evacuated, major refineries along the US Gulf Coast reported minimal impact from the storm. Ships at key ports like Corpus Christi, Galveston, and Houston were able to resume operations shortly after the storm passed.

ING analysts Warren Patterson and Ewa Manthey noted in a client communication that early indications suggested most energy infrastructure had come through the hurricane unscathed. This dampened market fears about major supply disruptions from Texas, which accounts for 40% of US crude oil production.

Following the storm, the Corpus Christi Ship Channel reopened on Monday and the Port of Houston was projected to resume operations by Tuesday afternoon. Key refiners, including Marathon Petroleum, were reportedly readying their refining units for restart.

While Hurricane Beryl did not cause the anticipated level of disruption, market observers are also keeping an eye on geopolitical tensions in the Middle East for further indicators that might influence oil prices. A potential ceasefire in Gaza has brought hopes of reduced global crude supply disruption. US and Egyptian officials continue to engage in negotiations, although substantial gaps remain, particularly in light of recent Israeli actions that could threaten the fragile talks.

On the economic front, market participants are awaiting significant US inflation data. Federal Reserve Chair Jerome Powell is scheduled to appear before Congress, and recent labor market softness has led investors to speculate about a possible interest rate cut in September. According to IG market strategist Yeap Jun Rong, validation from upcoming inflation data may support a more stable oil price environment, potentially offsetting concerns from other market pressures.

Meanwhile, Saudi Arabia aims to boost its August crude oil exports to China, marking the first rise in four months. Traders expect shipments to increase to at least 44 million barrels from about 36 million barrels in July. This upward trend could help Saudi Arabia regain market share in China, the world's largest oil importer.

Despite these positive developments, the overall market sentiment remains bearish in the short term. The limited impact of Hurricane Beryl and potential progress in Middle East ceasefire negotiations have contributed to downward pressure on oil prices. While increased Chinese demand for Saudi crude could provide some market support, it has not been sufficient to counteract the prevailing bearish outlook.

Additionally, Texas oil and gas companies are in the process of restoring operations following the storm. Major ports and navigation channels, which had been closed in anticipation of Beryl's arrival, began to reopen. Nevertheless, ongoing power outages present challenges for full operational recovery. Approximately 2.28 million customers in Texas, along with 30,000 more in Louisiana and Arkansas, remain without power as of Tuesday.

Flooding in the region is gradually easing, yet the prolonged power outages are affecting residential areas as well as industrial operations. Despite this, market reactions have been tempered due to the overall limited impact on oil production and refining activities. Some producers continue to face operational restrictions due to slow power restoration.

Houston and other affected areas are expected to experience hot weather, adding urgency to efforts to restore air conditioning and other essential services. Energy Transfer and Enterprise Products Partners both reported operational hiccups in the aftermath of the storm. Meanwhile, major industry players such as Shell, Chevron, and BP have begun redeploying personnel evacuated from Gulf of Mexico platforms.

In summary, while Hurricane Beryl's impact on the oil sector has been less severe than anticipated, market conditions remain influenced by broader economic indicators and geopolitical developments. Traders and market participants should continue to monitor these factors for cues on the direction of oil prices in the coming weeks.