Oil prices rose on Friday amid global supply concerns
Oil prices rose for the fourth consecutive day on Friday amid global supply concerns after strong storms in the US.
China's sale of state-owned crude oil reserves to the public for the first time caused a momentary drop in the rise.
Brent crude rose 12 cents, or 0.2%, to $77.37 a barrel after hitting a two-month high on Thursday and closing at its highest level since October 2018.
West Texas Intermediate (WTI) oil was up 6 cents, or 0.1%, at $73.36 a barrel, having closed 1.5% in the previous session, the highest since the start of August.
Oil companies in the United States are struggling to normalize deliveries to the east coast after storms damaged Gulf coast facilities.
Prolonged recovery and strong demand from Hurricane Ida disruptions are depleting oil stocks.
In a sign of stronger fuel demand, capacity utilization rates at US East Coast refineries rose to 93%, the highest level since May 2019, according to Energy Information Administration (EIA) data.
Inventory fell to its lowest level in almost three years after drawals from inventories were held high in the US due to damage from two hurricanes, EIA data earlier in the week showed.
Prices fell for a short while on Friday after China first sold its state reserves to the public. State-owned PetroChina and private refinery and chemicals manufacturer Hengli Petrochemical purchased four cargoes totaling approximately 4.43 million barrels, according to sources with direct knowledge of the auction.
However, the sale is thought to have little impact on the market due to its size compared to China's consumption and imports.
Some members or allies of the Organization of the Petroleum Exporting Countries (OPEC) have been struggling to increase production due to insufficient investment or delays in maintenance work during the pandemic that started last year.
Traders say US oil refineries are turning to Iraqi and Canadian oil to replace US Gulf crude oil lost due to the storms, while Asian buyers are turning to Middle Eastern and Russian grades.
Related Articles
Oil prices are rising as supply concerns increase amid expectations of a prolonged conflict in the Middle East
Oil prices continued to rise following US and Iranian attacks on ships serving their respective purposes
Oil prices closed higher this week following renewed US-Iran hostilities
