Oil prices rise on seasonal demand for travel

Oil drilling rigs

Oil prices rose on Friday, driven by seasonal travel demand, as markets assessed the potential impact of drone attacks on oil fields in northern Iraq on supply.

Brent crude futures for September delivery climbed 0.45%, or 30 cents, to $69.82 a barrel as of 08:00 am KSA time.

WTI crude futures for August delivery also increased by 0.4%, or 27 cents, to $67.81 a barrel.

Global oil demand averaged 105.2 million barrels per day in the first two weeks of July, up by 600,000 barrels per day from the same period last year, Reuters reported, citing a recent research note by JP Morgan.

On the other hand, drone attacks that lasted four days disrupted more than half of the Kurdistan Region of Iraq’s oil production, slashing output by around 140,000–150,000 barrels per day (bpd), compared to the normal level of around 280,000 bpd.