Oil rallies to $73 on tight US supplies due to Ida, Biden-Xi call
LONDON (Reuters) -Oil rose to around $73 a barrel on Friday, supported by growing signs of supply tightness in the United States as a result of Hurricane Ida and as U.S.-China trade hopes gave riskier assets a boost.
About three quarters of the U.S. Gulf’s offshore oil production, or about 1.4 million barrels per day, has remained halted since late August. That amount is roughly equal to what OPEC member Nigeria produces.
“With the restart in offshore crude production lagging, the odds are that the Ida effect will still be felt in the coming weeks,” said Stephen Brennock of oil broker PVM.
Brent crude rose $1.57, or 2.2%, to $73.02 by 1330 GMT. U.S. West Texas Intermediate (WTI) crude added $1.58, or 2.3%, to $69.72.
