Oil approaches 7-week high on lower production in Gulf of Mexico

Oil prices rose in the European market on Friday to maintain their gains for the fourth day in a row, as US crude approaches the highest level in seven weeks, and Brent crude the highest in six weeks, due to the significant decline in crude production in the Gulf of Mexico because of the tropical storm "Barry", in addition to the continued tensions in the Middle East.

By 08:35 GMT, US crude rose to $60.70 per barrel from the opening level of $60.48, recording a high of $60.78 and a low of $60.32.

Brent rose to $67.17 per barrel from the opening of $66.83 and recorded a high of $67.22 and a low of $66.74.

US crude added 0.4% yesterday, to jump to its highest level in seven weeks at $60.92 per barrel, and Brent rose nearly 0.2% and hit $67.62 its highest since May 30.

Oil companies in the Gulf of Mexico have cut more than 1 million barrels per day of production, equivalent to 53% of the region's output, due to the tropical storm Barry, which could reach the coast of Louisiana on Saturday.

The Gulf of Mexico produces about 17 percent of the US oil production, which is currently 12.3 million barrels per day, as the United States is the world's largest oil producer.

The British government said on Thursday that three Iranian ships tried to intercept the British Heritage ship in the Strait of Hormuz, but withdrew after warnings from a British naval frigate.

The incident renewed fears of the continued tensions in the Middle East, following attacks on tankers and the dropping of a US drone in June, which directly led to the United States accusing Iran of being behind the events.