Crude oil futures settled lower on Friday as prices declined on reports crude supply is getting restored slowly, after Hurricanes Ida and Nicholas had impacted production in the U.S. Gulf of Mexico.
A firm dollar also contributed to the decline in crude oil prices.
West Texas Intermediate Crude oil futures for October ended down by $0.64 or about 0.9% at $71.97 a barrel. WTI crude futures gained more than 3% in the week.
Brent crude futures settled at $75.34 a barrel today, down $0.33 or 0.4% from Thursday’s close. Brent crude futures also gained more than 3% in the week.
Despite restoration of supply, a report from the Bureau of Safety and Environmental Enforcement estimates that approximately 28% of the current oil production in the Gulf of Mexico is still shut in.
According to a report from Baker Hughes, the oil and gas rig count in the U.S. increassed by nine to 512 in the week to September 17, the highest level since April 2020.
The total rig count is now up 101% over this time last year. Oil rigs rose by 10 to 411 this week, while gas rigs fell one to 100.