Oil prices climb on tropical storm and geopolitical tensions

Oil prices are on track for a weekly gain and are trading near a six-week high as U.S. oil producers in the Gulf of Mexico have cut more than half their output because of a Tropical Storm Barry, also tensions continued to simmer in the Middle East.

The International Energy Agency (IEA) on Friday predicted that surging U.S. oil output will outpace sluggish global demand and will lead to larger supplies around the world in the next nine months.

Brent crude futures were up 64 cents, or almost 1 percent, at $67.16 a barrel and closed down 0.7 percent in Thursday's session.

U.S. crude futures were up 8 cents, or 0.1%, at $60.27. In the previous session the U.S. benchmark touched $60.94, its highest since May 23.

Brent prices have climbed 4.5 percent this week, while WTI prices have gained 5.5 percent. Both would be rebounds from the prior week.

U.S. crude oil inventories have declined for four weeks and prices were also supported by oil companies in the Gulf of Mexico cutting production because of Tropical Storm Barry.

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The storm was forecast to become a category one hurricane with winds of at least 74 mph.