Oil Higher on Weather Related Supply Disruptions

Oil prices edged higher on Friday and were on track for a weekly gain as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East.

However, an International Energy Agency (IEA) forecast for a global oil surplus capped the gains. The agency on Friday predicted that surging U.S. oil output will outpace sluggish global demand and lead to a large stocks build around the world in the next nine months.


West Texas Intermediate graph

OPEC also predicted on Thursday the return of a surplus next year despite an OPEC-led pact to restrain supplies.

Brent crude futures were up 36 cents at $66.88 a barrel by 1315 GMT after hitting a session high of $67.29.

U.S. West Texas Intermediate (WTI) crude futures were up 6 cents at $60.26 after touching a high of $60.74.

Brent prices have climbed 4.1% this week while WTI has gained 4.9%. Both registered declines last week.

via Reuters