Crude oil prices edged higher Friday morning and were well on course to end the week on a buoyant note, as rising worries about geopolitical tensions in the Middle East supported the commodity.
Traders were weighing the likely impact of Tropical storm Imelda on Texas where a major refinery has cut production and shut a crucial oil pipeline and some terminals, and possible drop in energy demand due to slowing global economy.
West Texas Intermediate Crude oil futures for October were up $0.62 or 1.07%, at $58.75 a barrel.
Brent oil futures were gaining $0.55, or 0.85%, at $64.95 a barrel.
On Thursday, WTI crude oil futures for October ended up by 2 cents at $58.13 a barrel.
Earlier this week, there were serious concerns about crude supply after the devastating drone attacks on Saudi Arabia’s oil facilities last Saturday.
The U.S. and Saudi Arabia both placed blame on Iran for carrying out the attack. Iran denied responsibility, while Yemen’s Houthi fighters claimed they were behind the attack.
Following the attack on Saudi oil infrastructure, Saudi Arabia’s production dropped by almost half. Saudi oil minister has pledged to restore lost production by the end of this month.