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 $1.45, or 1.5%, to settle at $98.15 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $2.25, or 2.4%, to settle at $92.09 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 gained 3.4% 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 rose 3.5%.