Oil prices surged on Friday, continuing a rally sparked by production disruptions in the U.S. Gulf of Mexico as Hurricane Francine forced the evacuation of offshore platforms ahead of its landfall in Louisiana. Brent crude futures gained 34 cents, or 0.5%, reaching $72.31 per barrel by 0322 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 39 cents, or 0.6%, to $69.36 a barrel.
If these gains hold, both benchmarks are poised to break a streak of weekly declines. Brent crude, which dipped below $70 per barrel earlier in the week for the first time since 2021, is on track for a 1.7% weekly rise, while WTI is set for a 2% increase.
IG market strategist Yeap Jun Rong noted that the dip to a near three-year low earlier in the week created an opportunity for a short-term recovery, as market participants priced in the disruptions to oil supplies caused by Hurricane Francine. Oil producers in the Gulf of Mexico began assessing damage and conducting safety checks on Thursday, with early estimates indicating a significant loss of supply.
The storm’s impact on oil production provided a temporary boost to prices, as traders factored in the reduced output in the already tight global oil market.
