On Friday, oil prices fell nearly 2% on anticipation that supply interruptions in the United States’ Gulf of Mexico would be temporary, while recession fears clouded the demand forecast.
Futures, on the other hand, were still on track for a weekly gain.
Brent crude futures slid $1.45, or 1.5%, to $98.15 per barrel, while WTI crude in the United States fell $2.25, or 2.4%, to $92.09 per barrel. On Thursday, both contracts climbed more than 2%.
‘After the massive run up yesterday, we’re coming back a little bit,’ said Phil Flynn, an analyst with Price Futures Group.
Brent gained 3.4% this week after falling 14% the previous week on concerns that increasing inflation and interest rates may harm economic growth and fuel demand. WTI gained 3.5%.
A damaged oil pipeline piece was expected to be replaced by the end of the day on Friday, according to a Louisiana port official, allowing production to resume at seven offshore U.S. Gulf of Mexico oil platforms.
Shell, the world’s largest oil producer in the Gulf of Mexico, announced on Thursday that it had halted production at three deepwater platforms in the region. The three platforms are each capable of producing up to 410,000 barrels of oil per day.
The Amberjack pipeline, one of two shut down by the leak, has been reactivated at a limited capacity, according to Shell spokesperson Cindy Babski. The Mars pipeline remained out, but she expects it to reopen later on Friday.
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