Brent closed up 4.1 percent at 104.28 dollars and WTI rose 3.6 percent to 91.49 dollars as a Gulf hurricane and Middle East shipping risks tightened supply.
Oil prices settled about 4 percent higher on Thursday as traders weighed the Iran war and supply losses tied to Hurricane Isaias, Reuters reported from Houston. Brent crude futures closed up 4.08 dollars, or 4.1 percent, at 104.28 dollars. US West Texas Intermediate rose 3.21 dollars, or 3.6 percent, to 91.49 dollars.
Both contracts were up more than 5 dollars at one point. Brent touched its highest since September 29 on concern about possible US strikes on Iran and on the hurricane's expected Friday landfall on the northern Gulf Coast. Prices eased from the highs after President Donald Trump said talks with Iran were productive and that Washington would not attack before the November 3 midterms.
Iran's Tasnim news agency reported that Foreign Minister Abbas Araqchi said Tehran is reviewing the US response to a proposal that would reopen the Strait of Hormuz within seven days, and that Iran would reply within days. Reuters said attacks on tankers in the strait last week rose to their highest level since the war began.
The Financial Express, citing the Marine Minerals Administration, reported that producers had halted 511,000 barrels a day because of the storm. Gulf output is a major share of US supply. S&P Global Energy's Jim Burkhard told ABC News that the cuts were steep enough to affect markets even if other Gulf hurricanes have caused larger disruptions.
The settlement reflects Thursday's close. It is not a forecast of Friday's open, and the landfall track was still a forecast when the market closed.
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- Jim Burkhard of S&P Global Energy said the production cuts are steep enough to affect markets even though other Gulf hurricanes have caused larger disruptions.