Oil Heads for Weekly Gain as Supply Risks Buoy Fragile Market - Bloomberg

Oil Heads for Weekly Gain as Supply Risks Buoy Fragile Market - Bloomberg:

Oil headed for a weekly increase as a storm in the Gulf of Mexico and simmering Middle East tensions supported the market, though the outlook remained clouded by concerns of a renewed supply surplus.

Futures were trading above $60 a barrel in New York on Friday, leaving this week’s increase at 4.8%. Tropical Storm Barry, which could hit the Louisiana coast on Saturday, has already curbed about half of the energy output in the Gulf. Meanwhile Iran’s attempt to block the passage of a British tanker in the Strait of Hormuz ratcheted up tension in the oil-rich Persian Gulf, and U.S. data showed a drop in American crude stockpiles to the lowest level in almost three months.

West Texas Intermediate crude for August delivery gained 10 cents to $60.30 a barrel on the New York Mercantile Exchange as of 1:43 p.m. London time.

Brent for September settlement rose 32 cents, or 0.5%, to $66.84 a barrel on the ICE Futures Europe Exchange. Prices are up 4% this week. The global benchmark crude traded at a $6.48 premium to WTI for the same month.