Oil Prices Update

SINGAPORE (Reuters) – Oil prices fell slightly on Friday as the risk of Hurricane Rafael affecting U.S. oil and gas output declined. The market is also considering how President-elect Donald Trump's policies might impact supplies.

Brent crude oil futures fell 26 cents, or 0.3%, to $75.37 per barrel by 0209 GMT, while U.S. West Texas Intermediate (WTI) crude gained 35 cents or 0.5% to $72.01. The benchmarks experienced a decline after nearly a 1% rise on Thursday.

For the week, Brent is set to gain 3.1%, while WTI is anticipated to rise 4.1%.

Hurricane Rafael has caused 391,214 barrels per day of U.S. crude oil production to be shut. It is expected to move slowly westward over the Gulf of Mexico, away from U.S. fields, and is forecasted to weaken through the weekend, according to the U.S. National Hurricane Center.

Prices corrected on Friday after gaining support on Thursday due to expectations that Trump's administration may tighten sanctions on Iran and Venezuela, potentially limiting supply. However, a strong dollar and reduced crude imports in China capped these gains.

A strong dollar increases the cost of oil for other currency holders, typically weighing on prices. Additionally, downward pressure was observed from data showing that crude imports in China, the world's largest oil importer, fell 9% in October. This marked the sixth consecutive month of year-on-year declines, compounded by a rise in U.S. crude inventories.