Oil Heads for 3rd Week of Gains as Output Stumbles

Oil Heads for 3rd Week of Gains as Output Stumbles
Oil Heads for 3rd Week of Gains as Output Stumbles

Oil prices steadied on Friday near a two-month high of $77.50 a barrel and were headed for a third straight week of gains, supported by global output disruptions and inventory draws.
The rally was slightly dampened by China’s first public sale of state crude reserves, Reuters reported.
Brent crude was up 22 cents, or 0.28%, at $77.47 a barrel, their highest since July 6, and close to their highest since October 2018.
US oil was up 7 cents, or 0.1%, at $73.37 a barrel, having closed 1.5% in the previous session, the highest since the start of August.
Oil prices have been supported in recent weeks by major disruptions in US Gulf Coast production following Hurricane Ida and other storms, which disruptions could last for months in some cases that have led to sharp draws in US and global inventories.
US oil refiners on the hunt for replacements for the Gulf Coast crude have turned to Iraqi and Canadian oil, analysts and traders said.
Some members of the Organization of Petroleum Exporting Countries and allies, known as OPEC+, have also struggled to raise output following underinvestment, or delays to maintenance work during the pandemic that began last year.
Brent oil prices could hit $80 a barrel by the end of September due to stock draws, lower OPEC production and stronger demand in the Middle East, analysts at UBS said in a note.
The gains were, nevertheless, capped by China’s first public sale of state oil reserves. 
State-owned PetroChina and private refiner and chemical producer Hengli Petrochemical bought four cargoes totaling about 4.43 million barrels, sources with direct knowledge of the auction said.

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