|
Brent crude futures rose 72 cents, or 1%, to $72.69 a barrel by
1048 GMT. U.S. West Texas Intermediate crude futures were up 80
cents, or 1.2%, at $69.77.
If those gains hold, both benchmarks will break a streak of
weekly declines despite Brent crude dipping below $70 a barrel
on Tuesday for the first time since late 2021.
At current levels, Brent is set for a weekly increase of about
2.3% while WTI is set to register a 3% gain.
"Ongoing supply disruptions in Libya and larger than expected
disruption in the Gulf of Mexico due to Hurricane Francine keep
the oil market tight," said UBS analyst Giovanni Staunovo.
"Further support is likely coming from short-covering activity
as result of rebounding prices."
A weaker U.S. dollar also helped support oil prices. The
currency fell to a one-week low on Friday, making
dollar-denominated commodities cheaper for holders of other
currencies.
Oil producers assessed damage and conducted safety checks on
Thursday as they prepared to resume operations in the U.S. Gulf
of Mexico. Official data showed that nearly 42% of the region's
oil output was shut in as of Thursday.
UBS analysts forecast September output in the region will fall
by 50,000 barrels per day (bpd) from the previous month while
FGE analysts estimated a drop of 60,000 bpd to 1.69 million bpd.
"If production delays were to prove to be short-lived and
damages to oil platforms were to be minimal, those gains may be
unwound, as the broader demand outlook continues to serve as a
key headwind to limit any sustained recovery," IG market
strategist Yeap Jun Rong said in an email.
Both the Organization of Petroleum Exporting Countries (OPEC)
and the International Energy Agency (IEA) lowered their demand
growth forecasts this week, citing economic struggles in China,
the world's largest oil importer.
In the United States, oil stockpiles also rose across the board
last week as crude imports grew and exports dipped, the Energy
Information Administration (EIA) said on Wednesday.
In the meantime, investors are looking ahead to the U.S. Federal
Reserve's policy meeting over Sept. 17-18 and a possible cut to
interest rates.
(Reporting by Arunima Kumar in Bengaluru, Trixie Yap in
Singapore and Shariq Khan in New YorkEditing by David Goodman)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
