Oil prices increased on Friday, continuing a rally triggered by production disruptions in the U.S. Gulf of Mexico, where Hurricane Francine prompted producers to evacuate platforms ahead of its landfall in Louisiana.
Brent crude futures climbed by 34 cents, or 0.5 percent, reaching $72.31 per barrel by 03:22 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures gained 39 cents, or 0.6 percent, to $69.36 a barrel.
If these gains are maintained, both benchmarks will break a series of weekly declines, even after a rocky start that saw Brent crude fall below $70 a barrel on Tuesday for the first time since late 2021. Currently, Brent is positioned for a weekly increase of approximately 1.7 percent, while WTI is expected to rise by over 2 percent.
On Thursday, oil producers evaluated damage and conducted safety assessments as they prepared to restart operations in the U.S. Gulf of Mexico, with estimates indicating significant supply loss due to Francine. Official reports revealed that nearly 42 percent of the region’s oil production was offline as of Thursday.
Disappointing demand forecasts
Demand expectations remained bleak, as both the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) revised their demand growth forecasts downward this week, citing economic challenges in China, the world’s leading oil importer.
Read more: Oil prices surge amid hurricane Francine concerns, yet demand worries temper gains
Customs data released on Tuesday indicated that China’s crude oil imports averaged 3.1 percent lower from January to August this year compared to the same timeframe last year.
Concerns about demand have also surfaced in the United States, where gasoline and distillate futures traded at multi-year lows this week, with analysts noting weaker-than-anticipated demand in the largest petroleum-consuming nation.
According to data from the U.S. Energy Information Administration, U.S. oil and fuel inventories rose last week as demand sharply declined.
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