Oil prices rise to the highest level in 3 years

Oil prices rose for the third week in a row, reaching their highest level in three years, on Friday, as disruptions in global production forced energy companies to withdraw large quantities of crude from inventories.

Brent crude futures rose 84 cents, or 1.1 percent, to settle at $78.09 a barrel, while US West Texas Intermediate crude rose 68 cents, or 0.9 percent, to a settlement price of $73.98.

This is the highest close for Brent since October 2018 and for WTI since July 2021, both higher for the second day in a row.

This was the third week of gains for Brent crude and the fifth for West Texas Intermediate, due to disruption of production in the US Gulf Coast by Hurricane Ida in late August.

“With oil prices heading to complete another week of gains, the market is bearing in mind the long-term impact of supply disruptions and the potential drawdown of inventories that will be necessary to meet refinery demand,” said Louise Dixon, senior oil markets analyst at Rystad Energy.

US energy companies added ten oil drilling rigs this week, raising the number of oil and gas rigs for the 14th consecutive month.

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