17.9 C
New York
Monday, May 23, 2022

Oil prices rise on uncertainty over Libyan crude exports

Oil prices rise on uncertainty over Libyan crude exports© Reuters. FILE PHOTO: An oil pump is seen operating in the Permian Basin near Midland

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices rose on Tuesday on uncertainty over Libyan oil exports, although plans by producer cartel OPEC to raise output continued to drag.

Brent crude futures (), the international benchmark for oil prices, were at $74.95 per barrel at 0104 GMT, up 22 cents, or 0.3 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures () were at $68.33 a barrel, up 25 cents, or 0.4 percent.

Traders said prices were mostly driven higher by uncertainty around oil exports by Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC).

Eastern Libyan commander Khalifa Haftar’s forces have handed control of oil ports to a separate National Oil Corporation (NOC) based in the East of the country.

The official state-owned oil company based in the capital Tripoli, also called NOC, will not be allowed to handle that oil anymore, he said.

In comments later confirmed to Reuters, Ahmed Mismari, spokesman of Haftar’s Libya National Army (LNA), said on television that no tanker would be allowed to dock at eastern ports without permission from an NOC entity based in the main eastern city, Benghazi.

The uncertainty over Libya’s oil exports came after OPEC together with a group of non-OPEC partners including top producer OPEC announced a supply rise of around 1 million barrels per day (bpd) aimed at cooling oil markets.

Oil markets have tightened significantly since 2017, when OPEC and its partners started withholding supply to prop up slumping prices at the time.

“Despite the OPEC agreement (last week) we believe that tight supply is likely to drive oil prices higher during 2018,” Jason Gammel of U.S. investment bank Jefferies said in a note

“We expect that Brent prices will be in excess of $80 per barrel in 2H18,” he added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

11,300FansLike
12,893FollowersFollow
751FollowersFollow
- Advertisement -

Latest Articles

Popular Articles