South Belridge Oil Field is the fourth largest oil field in California and one of the most fertile in the US
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Oil prices broke back Friday from a fall earlier a day on concerns that a large carrier landed in the Suez Canal could disrupt the critical shipping line for weeks, squeezing supply.
But prices were still headed for a third consecutive weekly loss.
Brent crude was higher by 43 cents, or 0.7%, at $ 62.38 per barrel by 0028 GMT, after falling 3.8% on Thursday.
U.S. West Texas Intermediate (WTI) crude fell 49 cents, or 0.8%, to $ 59.05 a barrel, after falling 4.3% a day earlier.
Both criteria were on track for a weekly loss of more than 3%, following a decline of more than 6% last week.
The locked vessel is stopping traffic in the Suez Canal, one of the world’s busiest shipping channels for regenerated oil and fuel, grain and other trade between Asia and Europe.
Officials stopped all boats that came into the canal Thursday, and a rescue company said the vessel may take weeks off.
“The Suez Canal blockade was expected to last for weeks raising fears of a supply squeeze in oil markets,” said Nissan Securities researcher Yasushi Osada.
“But there is concern that a new wave of locks in Europe and elsewhere could be expected to slow global fuel demand reducing price gains,” he said.
European countries are updating restrictions to prevent the release of COVID-19, which is likely to reduce fuel demand from the region. Germany, Europe’s largest economy, has seen the biggest rise in coronavirus cases since January.
In parts of western India, authorities ordered people in as new diseases hit their highest level in five months.
The oil market was also under pressure as producers struggled to sell to Asia, particularly China. Instead Asian consumers took cheaper oil from storage while maintaining brewing has reduced demand, industry sources said.