Oil prices plunged around 2% on Friday on expectations that supply disruptions in the US Gulf of Mexico would be short term, while recession fears clouded the demand outlook.
Futures, however, were still on track for a weekly gain. Brent crude futures fell $1.47, or 1.5%, to $98.13 a barrel by 1510 GMT, while US West Texas Intermediate (WTI) crude fell $2.08, or 2.2%, to $92.26 a barrel. Both contracts gained more than 2% on Thursday.
“We are pulling back a little bit after the big run up yesterday (Thursday),” said Price Futures group analyst Phil Flynn.
Brent was on track for a 3.5% gain this week after last week’s 14% tumble on fears that rising inflation and interest rates will hit economic growth and demand for fuel. WTI was on course for a 3.7% gain.
Crews were expected to replace a damaged oil pipeline piece by the end of the day on Friday, a Louisiana port official said, allowing for the resumption of production at seven offshore US Gulf of Mexico oil platforms.
On Thursday, top US Gulf of Mexico oil producer Shell said it halted production at three deepwater platforms in the region. The three platforms are designed to produce up to 410,000 barrels of oil per day combined.
Published in The Express Tribune, August 13th, 2022.
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