Oil prices rise, set for positive week amid rebound from 3-year lows By Investing.com

Investing.com– Oil prices rose in Asian trade on Friday and were set for a positive end of the week, as concerns over supply disruptions from Hurricane Francine helped crude recover from near three-year lows.

But crude oil prices continued to sustain steep losses from last week and traded only marginally above this week’s lows as lingering concerns about slowing demand halted crude’s advance.

U.S. crude that expires in November was up 0.6 percent at $72.43 a barrel, while it was up 0.7 percent at $68.60 a barrel by 9:23 p.m. ET (01 :23 GMT).

Both contracts rose 1% and 2.4% respectively this week.

Hurricane Francine disrupts Gulf of Mexico production

Oil production and refining activities in the Gulf of Mexico were affected by Hurricane Francine when it made landfall in Louisiana earlier this week, although it was later downgraded to a tropical storm.

Scores of offshore platforms in the storm’s path were evacuated throughout the week, while operations at oil and shipping terminals were also suspended.

The Gulf of Mexico accounts for nearly a quarter of all U.S. oil production, and any extended production shutdown heralds tighter domestic supplies.

Oil markets are grappling with demand concerns

But despite a positive boost this week, oil prices were still trading near three-year lows amid lingering concerns about slowing demand.

Weak economic signals from China were a key driver of those concerns as traders braced for potentially weaker demand in the world’s biggest oil importer.

Both the Organization of the Petroleum Exporting Countries and the International Energy Agency cut their 2024 oil demand forecasts in separate reports earlier this week, citing concerns about China.

But they also said that demand will come from other sources in Asia, particularly India, as the country experiences outsized economic growth.

In the U.S., data showing a big rise in gasoline and distillate inventories raised concerns that demand for the country’s fuel is slowing as the busy summer travel season ends.