Crude oil prices rose by more than $1-barrel yesterday due to growing global supply problems, with Norway shutting down one oilfield as hundreds of workers began a strike and Libya saying its production has more than halved in recent months.
Benchmark Brent oil futures rose by $1.13-barrel, or 1.4 percent, to $79.20-barrel by 0915 GMT, following a 1.2-percent climb on Monday, amid mounting supply concerns could push Brent above $85 per barrel, said market analysts.
Libya’s national oil production fell to 527,000 barrels per day from a high of 1.28 million bpd in February following recent oil port closures, the National Oil Corp said on Monday.
The USA wants to reduce oil exports from Iran, the world’s fifth-biggest producer, to zero by November, which would oblige other big producers to pump more.
Meanwhile the Saudi-dominated OPEC cartel has little capacity to fill the gap as demand for oil rises. Last month, OPEC and allies including Russia agreed to increase output to dampen price gains and offset global production losses in countries including Libya.
The market is concerned that if the Saudis offset the losses from Iran, that will use up global spare capacity and leave markets more vulnerable to further or unexpected falls in oil production.
11 Jul 2018