Brent crude topped 104 dollars a barrel on Friday as Hurricane Isaias shut in Gulf of Mexico production and investors braced for bank earnings.
Producers had shut about 1.3 million barrels per day of Gulf output — nearly 63 percent of the region’s production — as the storm moved through, according to market reports.
US benchmark WTI settled at 91.85 dollars a barrel, up 39 cents, while Brent gained 44 cents to close at 104.72 dollars.
The market also weighed President Trump’s comment that the United States would not strike Iran before next month’s midterms, which eased some supply fears, and his announcement of a Russian diesel purchase deal, which pushed diesel futures lower.
With Treasury yields near multi-decade highs and earnings season about to begin, energy markets head into the new week pulled between storm disruptions and demand worries.
Gold also shone on Friday, with December futures settling at 4,216.30 dollars an ounce, as investors sought safety amid the cross-currents. Silver climbed to 61.05 dollars an ounce.
Equity funds, meanwhile, saw their first weekly net outflow since mid-September, with investors pulling 5.11 billion dollars, according to LSEG Lipper data cited in market reports.
The coming week brings third-quarter earnings from the big banks — and, for energy traders, a watchful eye on the Gulf as Isaias moves on and shut-in production returns.
Consumer sentiment offered little comfort. The University of Michigan’s preliminary October reading came in at 46.3, below expectations, while one-year inflation expectations ticked up to 4.7 percent.
The euro, meanwhile, fell for a fifth straight week, slipping under 1.12 against the dollar as investors fretted over France’s record public debt and the political difficulty of budget cuts.
For oil traders, the immediate question is how quickly Gulf production comes back online. Past storms suggest most shut-in output returns within days — but each day of disruption tightens an already nervous market.
Longer term, the tug-of-war between geopolitical risk premiums and worries about demand will set the tone. Friday’s session captured both forces in a single day of trading.
