Oil prices rose on Friday, extending a rally sparked by output disruptions in the U.S. Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana.
Brent crude futures rose by 34 cents, or 0.5%, to $72.31 per barrel by 0322 GMT. U.S. West Texas Intermediate crude futures rose by 39 cents, or 0.6%, to $69.36 a barrel. If those gains hold, both benchmarks will break a streak of weekly declines, despite a rough start that saw Brent crude dip 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 1.7%, and WTI is set to gain over 2%.
“A previous dip to an almost three-year low called for some near-term breather to end the week, as market participants price (in) for the disruptions to short-term oil supplies caused by Hurricane Francine,” said IG market strategist Yeap Jun Rong in an email.
Oil producers assessed damage and conducted safety checks on Thursday as they prepared to resume operations in the U.S. Gulf of Mexico, as estimates emerged of the loss of supply from Francine.
