Oil ends higher on storm risk, gains 0.9% on week
SAN FRANCISCO (Oct 5) Crude-oil futures closed higher Friday, adding to a weekly gain as energy companies evacuated oil and natural-gas rigs in the Gulf of Mexico in preparation for a possible hurricane, raising concerns over energy supplies.
Crude oil for November delivery added 53 cents, or 0.5%, to settle at $103.84 a barrel on the New York Mercantile Exchange.
Prices, which fell 0.7% on Thursday, saw a gain of 0.9% for the week.
On ICE Futures, prices for Brent crude saw similar gains, with the November contract tacking on 46 cents, or 0.4%, to end at $109.46 a barrel.
While the Nymex oil-price impact based on the Gulf of Mexico threat was “muted, there are still risks,” said Phil Flynn, senior market analyst at Price Futures Group. “We have to be wary that the market is not underestimating this storm as its projected path puts it right into Louisiana and the entrance to refinery row,” he said.
Tropical Storm Karen was located around 240 miles south-southwest of the mouth of the Mississippi River as of Friday afternoon. A hurricane watch was in effect for Grand Isle, La. to the west of Destin, Fla., according to the National Hurricane Center.