Oil back above $101, awaits Hurricane Ike

Oil held above $101 a barrel on Friday, underpinned by Hurricane Ike which could threaten to disrupt production in the United States, the world’s biggest energy consumer.

U.S. crude for October delivery rose $1.09 to $101.96 a barrel by 5 a.m. EDT, having settled $1.71 lower on Thursday, when prices dipped as low as $100.10, the lowest level since early April.

London Brent gained 93 cents to $98.57 a barrel, after a fall to around a six-month low of $96.99 on Thursday.

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“We are on hurricane watch, as Ike takes aim at the U.S. refining sector this weekend,” said Edward Meir, of broker MF Global.

“We expect Friday’s session to end on a positive note. However, the markets could open sharply lower on Monday if Ike — similar to (Hurricane) Gustav before it — ends up being a ‘bust’.”

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