Oil prices fall marginally as Hurricane Rafael expected to start weakening

Oil prices fell slightly on Friday as the risk that a hurricane in the Gulf of Mexico will affect US 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 per cent, to $75.37 per barrel by 0209 GMT. US West Texas Intermediate (WTI) crude gained 35 cents or 0.5 per cent to $72.01. The benchmarks fell after rising nearly 1 per cent on Thursday.

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

Hurricane Rafael, which has caused 391,214 barrels per day of US crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from US fields while forecast to weaken from Friday and through the weekend, the US 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 per cent in October, the sixth consecutive month showing a year-on-year decline, as well as from a rise in US crude inventories.