Oil up, nears $73 a barrel
Oil edged toward $73 a barrel on Friday, boosted by increasing indications of supply tightness in the U.S. due to Hurricane Ida and as the U.S.-China trade hopes gave riskier assets a lift.
Around three-quarters of the entire U.S. Gulf’s offshore production, or about 1.4 million barrels per day, have remained offline since late August.
Figures released within the week revealed U.S. crude inventories have dropped to their lowest since September 2019.
Brent crude soared 1.7%, or $1.20, to $72.65 by 0825 GMT. U.S. West Texas Intermediate (WTI) jumped 1.5%, or $1.05, to $69.19.
Oil and equity markets were helped by the news of a call between U.S. President Joe Biden and China’s Xi Jinping. The call stoked hopes for warmer relations and further global trade.
Brent was poised to end the week with a small gain and has increased almost 40% this year, boosted by supply cuts by the Organization of Petroleum Exporting Countries (OPEC+) and some demand recovery from the pandemic.