Oil futures jump 10% as traders eye Hurricane Ida

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Oil futures finished with a gain on Friday, with U.S. prices up over 10% for the week, as traders tracked the path of Hurricane Ida in the Gulf of Mexico. It’s expected to make landfall along the U.S. northern Gulf Coast on Sunday, disrupting oil and natural-gas operations in the region. “We expect production to go offline at Gulf rigs, which means less supply in the near term, but that will be offset by falling demand from Gulf Coast refineries that will likely shut operations as well,” said Tyler Richey, co-editor at Sevens Report Research. “How demand expectations change in the wake of the storm will depend on the damage sustained from the storm.” About 58.51% of Gulf of Mexico oil output was shut in on Friday, according to the Bureau of Safety and Environmental Enforcement. For natural gas, 48.79% of output was shut in. West Texas Intermediate crude for October delivery
CLV21,
+1.90%
rose $1.32, or 2%, to settle at $68.74 a barrel on the New York Mercantile Exchange.

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