Oil prices reverse losses, gain on tight supply concerns

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Oil prices reversed losses and edged up on Monday as concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia outweighed fears of a global recession.

Brent crude futures for September rose 55 cents, to $112.18 a barrel after falling over $1 in early trade.

U.S. West Texas Intermediate (WTI) crude futures for August delivery gained 44 cents, to $108.87 a barrel, after also falling $1 earlier.

Oil fundamentals remain supportive. Strong time spreads point to a tight market and clearly OPEC is still struggling to hit its agreed output levels.

Output from the ten members of Group of the Petroleum Exporting International locations (OPEC) in June fell 100,000 barrels per day (bpd) to twenty-eight.52 million bpd, off their pledged improve of about 275,000 bpd, a Reuters survey confirmed. learn extra

Declines in Nigeria and Libya offset will increase by Saudi Arabia and different giant producers, and Libya faces additional provide disruption as a result of escalating political unrest, making the chance of OPEC assembly its newly elevated manufacturing quotas much more unlikely, mentioned ANZ Analysis analysts in a notice.

Libya’s exports have dropped to between 365,000 bpd and 409,000 bpd, down about 865,000 bpd in comparison with regular ranges, the Nationwide Oil Corp mentioned final week.

In an extra hit to produce, a deliberate strike by Norwegian oil and fuel staff this week may minimize the nation’s oil and condensate output by 130,000 bpd. learn extra




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