WASHINGTON (dpa-AFX) - Despite the International Energy Agency lowering its oil demand forecast for the year, oil prices climbed higher on Thursday amid reports of supply cuts in facilities along the Gulf of Mexico due to the impact of Hurricane Francine.
West Texas Intermediate Crude oil futures for October ended up by $1.66 or nearly 2.5% at $68.97 a barrel.
Brent crude futures were up $1.55 or about 2.2% at $72.16 a barrel a little while ago.
According to an estimate by UBS, hurricane Francine may have disrupted up to 1.5 million barrels of U.S. crude production.
As of Wednesday afternoon, several offshore platforms were shut down in the Gulf of Mexico due to Francine's landfall in southern Louisiana.
Expectations of an interest rate cut by the Federal Reserve rose after data showed the annual inflation rate in U.S. slowed to 2.5% in August from 2.9% in July.
In economic news today, the Labor Department said its producer price index for final demand crept up by 0.2% in August, while revised data showed prices were unchanged in July.
Economists had expected producer prices to inch up by 0.1%, matching the uptick originally reported for the previous month.
CME Group's FedWatch Tool currently suggests rates will lower by at least a full percentage point following the Fed's December meeting.
Investors also noted the European Central Bank's decision to lower interest rates by 25 basis points for the second time this year.
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