Oil heads for third week of gains as output stumbles | Reuters

Oil heads for third week of gains as output stumbles | Reuters

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.

Brent crude was up 222 cents, or 0.28%, at $77.47 a barrel by 0743 GMT, their highest since July 6, and close to their highest since October 2018.

U.S. 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 U.S. Gulf Coast production following Hurricane Ida and other storms, disruptions which could last for months in some cases, that have led to sharp draws in U.S. and global inventories.