Oil prices rise, hit 2-month highs on supply worries | Reuters

Oil prices rise, hit 2-month highs on supply worries | Reuters

Oil prices rose on Thursday, with Brent crude touching its highest level in more than two months, supported by growing fuel demand and a draw in U.S. crude inventories as production remained hampered in the Gulf of Mexico after two hurricanes.

Supply concerns had funds taking longer positions, analysts said.

Brent crude settled up $1.06, or 1.4%, at $77.25 a barrel, its highest price since mid-July. U.S. West Texas Intermediate (WTI) crude rose $1.07, or 1.5%, to $73.30 a barrel.

"The reality is setting in - there's more talk about global inventories tightening and there are concerns about supply issues going into winter," said Phil Flynn, senior analyst at Price Futures Group in Chicago. Additional support may come as the White House takes a tougher line on Iran, he said.