oil spikes on supply tensions

LONDON — Brent oil prices jumped on Friday close to a three-year peak, boosted by tight supplies, particularly in the United States, analysts said.

In late afternoon deals, European benchmark Brent North Sea crude for delivery in November struck $77.87 per barrel — reaching a high last seen on October 29, 2018.

"The price rise is being facilitated by limited supply coupled with robust demand, causing the oil market to tighten noticeably," said Commerzbank analyst Carsten Fritsch.

Brent prices later stood at $77.68, up 0.6 per cent from Thursday.

New York's West Texas Intermediate (WTI) crude for November rose 0.4 per cent to $73.60 a barrel.

Global supplies have been disrupted because US production remains hampered by ongoing fallout from Hurricane Ida in the Gulf of Mexico and Louisiana.

The United States is both the world's largest consumer and producer of crude oil.

"Underpinning the latest bout of price strength is a tightening supply backdrop," added PVM analyst Stephen Brennock. "Latest weekly data showed [US] domestic crude stocks fell to their lowest level in three years amid continued production outages in the Gulf of Mexico."He concluded: "Hurricane Ida may be long gone but it is still causing problems for the US."