WASHINGTON (dpa-AFX) - Oil futures gave up early gains and drifted lower on Friday on reports crude oil production resumed in several facilities along the U.S. Gulf of Mexico.
Concerns about the outlook for oil demand from China weighed as well on oil prices.
On Thursday, the International Energy Agency (IEA) lowered its oil demand growth forecast for the year and warned the oil market could face a surplus next year even if the OPEC+ alliance keeps its voluntary oil output cuts in place
West Texas Intermediate Crude oil futures for October ended down $0.32 or about 0.46% at $68.65 a barrel.
Brent crude futures were down $0.09 at $71.88 a barrel a little while ago.
Oil prices had surged higher in the previous two sessions as oil facilities along the U.S. Gulf of Mexico were shut down due Hurricane Francine.
About 42% percent of the current oil production and 53% of the natural gas output in the Gulf of Mexico had been shut in, the U.S. Bureau of Safety and Environmental Enforcement said in a report on Thursday.
Gulf of Mexico production makes up around 15% of total U.S. crude oil output, or nearly 2 million barrels of oil per day.
A report from Baker Hughes today said the oil and gas rig count in the U.S. rose by eight in the week to September 13, to 590. While oil rigs rose by five to 488, gas rigs rose by three to 97.
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