Oil prices settle higher as more production shut ahead of hurricane

Oil prices rose on Friday as Hurricane Isaias approached the northern Gulf of Mexico, prompting oil companies to shut down more than 70 percent of crude production in US waters. Brent crude futures closed at $104.72 per barrel, while US WTI crude finished at $91.85 per barrel. Over the course of the week, Brent crude increased by 2.4 percent, and WTI climbed by 0.8 percent.

US President Donald Trump had reportedly engaged in "productive discussions" with Iran on Thursday, expressing confidence that no attack would occur before the 3 November midterm congressional elections. This followed media speculation that a potential strike was being contemplated.

The oil market has been grappling with the impact of Hurricane Isaias in the Gulf of Mexico, where producers have curtailed approximately 1.3 million barrels per day, or 70 percent, of existing oil production as of Thursday. In addition to the hurricane's effects, rising concerns over potential supply disruptions due to renewed attacks on tankers near the Strait of Hormuz have contributed to a rise in Asian spot LNG prices.

The average LNG price for November delivery into northeast Asia reached $26.50 per million British thermal units, up from $25.25 per mmBtu the previous week.

European natural gas prices also experienced a weekly gain, with the Dutch TTF gas price settling at $26.61 per mmBtu, marking a 6.0 percent increase. As of now, gas storage sites in Europe are at 73.12 percent capacity, the lowest level for this time of year since records began in 2011. The EU's complete ban on Russian LNG imports starting January 2027 may necessitate a reduction of 7 percent in its natural gas demand for the winter of 2026–27 compared to the previous year.