The price of crude rose to near US$104 a barrel Friday as offshore oil rigs in the Gulf of Mexico braced for Tropical Storm Karen.
Investors were also keeping a close watch on developments in Washington D.C., as the partial shutdown of the U.S. government entered a fourth day.
Benchmark West Texas Intermediate crude for November delivery rose 53 cents to close at US$103.84 on the New York Mercantile Exchange. For the week oil was up 97 cents, snapping a three-week losing streak that knocked $7.66, or seven per cent, off the price of a barrel.
Several oil companies operating in the Gulf of Mexico, including Exxon, said they were taking precautionary measures, including the evacuation of non-essential personnel from offshore installations in the path of the tropical storm that could turn into a weak hurricane over the weekend.
The potential disruption comes amid the budget impasse in the U.S. Some 800,000 federal workers and scores of agencies were idled this week after a sharply divided Congress failed to agree on short-term funding for the government to pay its bills beyond last Monday, when the fiscal year ended.
A prolonged halt to government activities would reduce demand for energy and result in lower prices of fuels such as gasoline. That would be a boon for U.S. drivers but also signal a weak economy.
Brent, the benchmark for international crudes, gained 46 cents to US$109.46 on the ICE Futures exchange in London.
In other energy futures trading on Nymex, wholesale gasoline fell three cents to US$2.61 a U.S. gallon (3.79 litres), heating oil was flat at US$3 a gallon and natural gas rose one cent to US$3.51 per 1,000 cubic feet.
(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS.UN), (TSX:CVE)