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Oil posts biggest weekly gains in over a year ahead of Hurricane Ida

Oil prices rose 2% on Friday, posting their biggest weekly gains in over a year, as energy firms began shutting U.S. production in the Gulf of Mexico ahead of a major hurricane expected to hit early next week.

Brent futures rose $1.63, or 2.3%, to settle at $72.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.32, or 2.0%, to settle at $68.74.

That was the highest close for Brent since Aug. 2 and for WTI since Aug. 12.

For the week, Brent gained over 11% and WTI rose more than 10%, which was the biggest weekly percentage gains for both since June 2020.

Oil producers on Friday have shut-in 59% of Gulf of Mexico crude production as the ninth-named storm of the season barreled towards the key U.S. offshore oilfields, according to the Bureau of Safety and Environmental Enforcement (BSEE). 

U.S. oil and gas companies raced to complete evacuations from offshore Gulf of Mexico platforms before Hurricane Ida slams into Louisiana as a major storm early next week. 

Reference: CNBC