Oil prices fall as Hurricane Rafael expected to start weakening

SINGORE, - Oil prices fell slightly on Friday as the risk that a hurricane in the Gulf of Mexico will affect U.S. oil and gas output declined while the market continues to weigh how President-elect Donald Trump's policies might affect supplies.

Brent crude oil futures fell 26 cents, or 0.3%, to $75.37 per barrel by 0209 GMT. U.S. West Texas Intermediate crude gained 35 cents or 0.5% to $72.01. The benchmarks fell after rising nearly 1% on Thursday.

For the week, Brent is set to gain 3.1% while WTI is set to rise 4.1%

Hurricane Rafael, which has caused 391,214 barrels per day of U.S. crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from U.S. fields while forecast to weaken from Friday and through the weekend, the U.S. National Hurricane Center said.

Prices corrected on Friday after gaining support on Thursday on expectations that Trump's incoming administration may tighten sanctions on Iran and Venezuela, which could limit supply, though a strong dollar and lower crude imports in China capping gains.

A strong dollar makes oil more expensive for other currency holders and tends to weigh on prices.

Downward pressure also came from data showing crude imports in China, the world's biggest oil importer, fell 9% in October, the sixth consecutive month showing a year-on-year decline, as well as from a rise in U.S. crude inventories.

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