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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 major Hurricane Ida hit at the beginning of next week.
Brent crude futures rose $ 1.63, or 2.3%, to $ 72.70 a barrel, while U.S. West Texas Intermediate crude rose $ 1.32, or 2%, for 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 over 11% and West Texas Intermediate over 10%, the biggest weekly percentage gains for the two since June 2020.
“Energy traders are pushing crude oil prices up, in anticipation of production disruptions in the Gulf of Mexico and in light of rising expectations that OPEC + could hold back production increases given the ‘recent impact of Delta pressure on crude demand,’ said Edward Moya, senior market analyst at OANDA.
Oil producers shut down 59% of crude production in the Gulf of Mexico today as the storm approaches the major offshore oil fields in the United States, according to the Office of Safety and Environmental Enforcement.
U.S. 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, increasing the number of rigs 12 consecutive months for the first time since July 2017.
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