WASHINGTON (dpa-AFX) - Oil prices extended gains on Friday, after having jumped more than 2 percent in the previous session as storm Francine disrupted production in the Gulf of Mexico.
As policymakers begin easing policy, investors are also pinning hopes that lower interest rates can speed economic growth and boost fuel demand.
The dollar held near a nine-month low versus the yen amid speculation about an outsized rate cut at next week's Federal Reserve policy meeting.
Benchmark Brent crude futures rose about 1 percent to $72.66 a barrel in European trade, while WTI crude futures were up 1.2 percent at $69.77.
Oil prices remain on track for their first weekly gain in a month after falling below $70 a barrel earlier this week, a level not seen in more than two years.
About 42 percent of the current oil production and 53 percent of the natural gas output in the Gulf of Mexico has been shut in, the U.S. Bureau of Safety and Environmental Enforcement said in a report on Thursday.
Gulf of Mexico production makes up around 15 percent of total U.S. crude oil output, or nearly 2 million barrels of oil per day.
On Thursday, the International Energy Agency lowered its oil demand growth forecast for the year and warned the oil market could face a surplus next year even if the OPEC+ alliance keeps its voluntary oil output cuts in place.
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