REUTERS, New York

Oil prices settled more than 2 percent lower on Friday as traders grew less fearful of prolonged supply disruptions from a hurricane in the US Gulf of Mexico, while China’s latest economic-stimulus packages failed to impress some oil traders.

US West Texas Intermediate futures led the decline and settled at 70.35 per barrel, down by 2.7 percent, or $1.98. Global benchmark Brent crude futures fell by 2.3 percent, or $1.76, to$73.87 per barrel. Energy producers shut in more than 23 percent of oil output in the US. Gulf of Mexico by Friday to brace against Hurricane Rafael. However, the latest forecasts on trajectory and intensity reduced the risks Rafael poses to oil production.

“Threats of supply outages due to Hurricane Rafael are subsiding as the storms shifts to circling in the center of the Gulf of Mexico for the next five days or so,” Alex Hodes, analyst at brokerage firm StoneX told clients in a note.