Oil heads for weekly gain on tropical storm concerns in Gulf of Mexico

Oil Prices continued to rise with the opening of the US market on Friday to extend 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, as oil prices are on track for the third weekly gain in a month.

By 12:30 GMT, US crude rose to $60.55 per barrel from the opening of $60.48, with a high of $60.78 and a low of $60.23.

Brent crude rose to $66.90 per barrel from the opening of $66.83 and recorded a high of $67.26 and a low of $66.67.

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 Vessel 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.

Oil prices rose over the course of the week, averaging by 4.5%, in the third weekly gain in a month, as concerns over the supply gap in the United States have declined, especially after a significant drop in US crude inventories.

The US Energy Information Administration announced on Wednesday that the country's inventories fell 9.5 million barrels in the week ending in July 5, the fourth consecutive weekly decline, exceeding experts' expectations of a 1.9 million barrel drop.

According to the data, total US trade inventories fell to 459.3 million barrels, the lowest level since the week ending April 11, in a positive sign of improved domestic demand in the world's top oil consumer.