Oil rises on US supply disruptions

Oil drilling rigs

Oil prices rose today, Sept. 12, following the closure of some US drilling platforms and refining facilities in the Gulf of Mexico due to Hurricane Francine making landfall in Louisiana.

Brent crude was trading up 0.69% at $71.10 a barrel at 08:21 am Makkah time. WTI crude rose 0.56% to $67.69 a barrel.

Both benchmark grades gained more than 2% in the previous session.

A number of offshore drilling platforms and US oil refining facilities in the Gulf of Mexico suspended production due to Hurricane Francine on Sept. 11.

This helped offset the negative effects of the rise in commercial oil inventories in the US by 800,000 barrels during the past week, according to the Energy Information Administration. In comparison, stockpiles decline by 6.9 million barrels in the previous week, which indicates a slowdown in demand for black gold in the world's largest economies.

Investors are awaiting the release of the monthly report of the International Energy Agency today to get directions on the prospects for growth in global demand for oil.