Oil edges up as storm hampers US supply, glut forecasts weigh


Oil edges up as storm hampers US supply, glut forecasts weigh

Oil futures edged up on Friday as US Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global surplus in the months ahead limited gains.

Brent crude futures were up 31 cents to $66.83 a barrel by 11:21 a.m. EDT (1521 GMT). U.S. West Texas Intermediate (WTI) crude futures gained 16 cents at $60.36 a barrel. Brent has climbed 4% so far this week while WTI was on track for a 4.9% rise. Both registered declines last week.

Tropical Storm Barry, which is expected to become a hurricane just before making landfall this weekend with winds of at least 74 mph (119 kph), boosted crude futures as oil companies in the Gulf of Mexico reduced production.

Companies cut more than 1 million barrels per day (bpd) of output, or 53% of the region’s production, as the storm headed for possible landfall on the Louisiana coast on Saturday. Read More

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