Oil falls 2% on expectations that U.S. Gulf supply disruption will ease | Reuters

Oil falls 2% on expectations that U.S. Gulf supply disruption will ease | Reuters

Oil prices plunged around 2% on Friday, on expectations that supply disruptions in the U.S. Gulf of Mexico would be short-term, while recession fears clouded the demand outlook.

Futures, however, were still on track for a weekly gain.

Brent crude futures fell $1.83, or 1.8%, to $97.77 a barrel by 11:10 a.m. EDT (1510 GMT), while U.S. West Texas Intermediate (WTI) crude fell $2.16, or 2.3%, to $92.18 a barrel. Both contracts gained more than 2% on Thursday.

"We are pulling back a little bit after the big run up yesterday," said Phil Flynn, an analyst at Price Futures group.

Brent was on track for a 3% gain this week after last week's 14% tumble on fears that rising inflation and interest rates will hit economic growth and demand for fuel. WTI was on course for a 3.7% gain.