Oil Up as Supply Outages Outweigh Demand Fears

Oil prices edged higher on Monday as output disruptions in Libya and planned shutdowns in Norway offset concerns that an economic slowdown would dampen demand.
International benchmark Brent crude was trading at $111.92 per barrel at 0705 GMT for a 0.26% increase after the previous session closed at $111.63 a barrel.
American benchmark West Texas Intermediate (WTI) was at $108.62 per barrel at the same time for a 0.17% gain after the previous session closed at $108.43 a barrel.
Prices fell in early trading in Asian markets as data last week showed that manufacturing activity in the US dropped by more than expected last month, adding to fears of an economic recession and consequent weak demand.
However, prices soon rebounded on Monday over prevailing supply fears in Norway and Libya.
A planned strike by Norwegian energy sector workers is due to have a substantial impact on gas exports, with 13% losses expected in daily gas exports, according to the employers’ group, the Norwegian Oil and Gas Association (NOG).
The country will also incur a daily oil output loss of 130,000 barrels, NOG added.
On Thursday, the Libyan National Oil Corporation (NOC) declared a force majeure at the Es Sider and Ras Lanuf ports and the El Feel oilfield, while a force majeure at the ports of Brega and Zueitina is still in effect.
Daily exports ranged between 365,000 and 409,000 barrels per day (bpd), a drop of 865,000 bpd compared to production under “normal circumstances,” according to NOC.

About Parvin Faghfouri Azar

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