Oil records biggest weekly gain in more than a year as Hurricane Ida approaches US offshore fields.
New York– Reuters- Oil prices rose 2% on Friday, posting the biggest weekly gain in more than a year, as energy companies began halting US production in the Gulf of Mexico before a major Hurricane Ida is expected to hit early next week.
Brent crude futures rose $1.63, or 2.3 percent, to settle at $72.70 a barrel, while US West Texas Intermediate crude rose $1.32, or 2%, to a settlement price of $68.74.
This is the highest close for Brent since August 2 and for WTI since August 12.
On a weekly basis, Brent is up more than 11%, and West Texas Intermediate is up more than 10%, the biggest weekly percentage gains for both since June 2020.
“Energy traders are pushing crude oil prices higher, in anticipation of production disruptions in the Gulf of Mexico and in light of growing expectations that OPEC + may curb production increases given the recent impact of the Delta strain on crude demand,” said Edward Moya, senior market analyst at OANDA.
Oil producers shut down 59% of crude oil production in the Gulf of Mexico today as the storm approaches toward major US offshore oil fields, according to the Office of Safety and Environmental Enforcement.
US oil rigs rose five to 410 this week, Baker Hughes Energy Services said, the highest level since April 2020.
In August, energy companies added 25 oil rigs, the most in a month since January, raising the number of rigs 12 months in a row for the first time since July 2017.