Oil Price Surges to $73 on Tight U.S. Supplies

BUSINESS TURKMENISTAN
Oil Price Surges to $73 on Tight U.S. Supplies
About three quarters of the U.S. Gulf's offshore oil production, or around 1.4 million barrels per day, has remained halted since late August.

Global oil prices 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 phone call between the heads of the U.S. and China, Reuters news agency reports.

About three quarters of the U.S. Gulf's offshore oil production, or around 1.4 million barrels per day, has remained halted since late August. That amount is roughly equal to what OPEC member Nigeria produces.

Brent oil rose $1.57, or 2.2%, to $73.02 in mid-day trades. U.S. West Texas Intermediate (WTI) crude added $1.58, or 2.3%, to $69.72.

Oil and equity markets also got a boost from news of a call between U.S. President Joe Biden and his Chinese counterpart Xi Jinping. The call raised hopes for warmer relations and more global trade, according to the analysts.

Brent has rallied 41% this year, driven by supply cuts by the Organization of the Petroleum Exporting Countries and some demand recovery from the pandemic.

On Thursday, oil prices had fallen more than 1% after China said it would release crude oil reserves via public auction to help ease high feedstock costs for refiners, a move described as a first.