Oil scales up to three-year high

Oil scales up to three-year high

LONDON: Oil prices declined on Friday to $77 a barrel, holding near a three-year high as they headed for a third straight week of gains, supported by global output disruptions and inventory draws.
The rally was slightly dampened by China’s first public sale of state crude reserves. Brent crude was down 27 cents, or 0.35%, at $76.98 a barrel by 1312 GMT, after earlier rising as high as $77.74, it’s highest since July 6, and close to its highest since October 2018.
US oil was down 40 cents, or 0.55%, at $73.15 a barrel, having closed 1.5% in the previous session, the highest since the start of August. Oil prices have been supported in recent weeks by major disruptions in US Gulf Coast production following Hurricane Ida and other storms, disruptions which could last for months in some cases that have led to sharp draws in US and global inventories. US oil refiners on the hunt for replacements for the Gulf crude have turned to Iraqi and Canadian oil, analysts and traders said. 
Some members of the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, have also struggled to raise output following under-investment or delays to maintenance work during the pandemic that began last year. Brent oil prices could hit $80 a barrel by the end of September due to stock draws, lower OPEC production and stronger demand in the Middle East, analysts at UBS said in a note.­­—Agencies