MELBOURNE Reuters - Oil prices barely moved on Friday even as more supply returned online in the U.S. Gulf of Mexico after two hurricanes, with benchmark contracts on track to post weekly gains of around 4% as the output recovery is seen low demand.
U.S West Texas Intermediate WTI crude futures slipped 2 cents to $72.59 a barrel at 0147 GMT, after lying unchanged on Thursday.
Brent crude futures inched up 4 cents to $75.71 a barrel, adding to a 21 cent gain on Thursday.
Both contract were on course to climb about 4% for the week, with Brent near a six-week high and WTI near a seven-week high, as output in Gulf of Mexico recovered faster than expected after Hurricane Ida damaged facilities in August and Tropical Storm Nicholas hit this week.
As of Thursday, 28% of U.S Gulf of Mexico crude production remained offline https: www.reuters.com. com business energy us-gulf crude oil ramps-up - after Hurricane Ida - loss-data data - 2021 - 09 - 16, two-and-a-half weeks after hurricane hitting.
It's taking longer than people thought if they really took the time to step back. That was a supportive factor in the market, Commonwealth Bank commodities analyst Vivek Dhar said.
We're going to have a more supply deficit problem - that certainly seems to be the view. Preliminary data from the U.S. Energy Information Administration show U.S. crude exports in September slipped to between 2.34 million bpd and 2.62 million bpd from 3 million bpd in late August.
Dhar also pointed to data from the International Energy Agency this week, showing oil inventories in November falling to a low as the recovery in fuel demand is expected to outpace supply.
The risk of low demand in Southeast Asia has disappeared as COVID 19 cases appear to have peaked in countries like Indonesia, Malaysia and Thailand, he said.