Oil rises to $79 a barrel on Norway strike, Libyan disruption

TOKYO/LONDON (Reuters) - Oil prices rose by over 1 percent toward $79 per barrel on Tuesday due to growing supply outages, with Norway shutting one oilfield as hundreds of workers began a strike and Libya saying its production more than halved in recent months.

The disruptions add to supply worries around the world. Venezuela’s production has collapsed due to a lack of investment and Iranian exports have suffered due to U.S sanctions. OPEC has little capacity to fill the gap as demand for oil quickens.

Benchmark Brent oil futures LCOc1 rose by 96 cents, or 1.2 percent, to $79.03 per barrel by 1147 GMT. They earlier hit an intraday high of $79.29. Brent gained 1.2 percent on Monday.

U.S. light crude futures CLc1 were up 35 cents, or 0.5 percent, at $74.20.

Mounting supply concerns could push Brent above $85 per barrel, MUFG Bank said in a note.

“Renewed geopolitical supply-side disruptions stemming from Canada, Iran, Libya, Venezuela and the U.S. raise the likelihood of oil trade interruptions and with it upside risks to oil prices in the near term,” MUFG said.

Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated oilfield.

That potentially adds to disruptions in other oil producers amid tensions in the Middle East.

Libya’s national oil production fell to 527,000 barrels per day (bpd) from a high of 1.28 million bpd in February following recent oil port closures, National Oil Corp said on Monday.

The United States says it 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.

Saudi Arabia, fellow members of the Organization of the Petroleum Exporting Countries and allies including Russia agreed last month to increase output to dampen price gains and offset global production losses.

The market has grown concerned that if Saudi Arabia offsets the losses from Iran, that will use up global spare capacity and leave markets more vulnerable to further or unexpected production declines.

“The bottom line becomes the available spare capacity within OPEC ... and the markets have started to focus on that,” said Victor Shum, vice-president for energy at IHS markets in Singapore.

Money managers raised their bullish bets on U.S. crude in the week to July 3, the U.S. Commodity Futures Trading Commission said on Monday.

Reporting by Aaron Sheldrick in Tokyo and Dmitry Zhdannikov in London; Editing by Dale Hudson and Edmund Blair

Panorama Hispano is the regional news and information newspaper for Hispanic and other diverse communities.

US Hispanics are now the largest ethnic minority in the United States numbering 54.2 million as of July 2014. Serving: Buffalo, Rochester, Fredonia, Niagara Falls, NY and Erie, PA. Outside our Market area: Visit our affiliate at: http://www.impremedia.com/

Contact us: Contact@PanoramaHispanoNews.com

Featured News

Jan 15, 2021
AMLO acusa a la DEA de “fabricar” acusación contra genera

CIUDAD DE MÉXICO (AP) — Un día después de que la fiscalía general de México anunció que desestimaba los cargos de narcotráfico contra su exsecretario de Defensa, el presidente Andrés Manuel López Obrador dijo el viernes que la agencia antidrogas de Estados Unidos (DEA por sus siglas en inglés) “fabricó” las acusaciones contra el general […]

Read More
Jan 15, 2021
Expanded vaccine rollout in US spawns a new set of problems

The rapid expansion of COVID-19 vaccinations to senior citizens across the U.S. has led to bottlenecks, system crashes and hard feelings in many states because of overwhelming demand for the shots. Mississippi’s Health Department stopped taking new appointments the same day it began accepting them because of a “monumental surge” in requests. People had to […]

Read More
Jan 15, 2021
Allen, Jackson set for playoff showdown as Bills host Ravens

ORCHARD PARK, N.Y. (AP) — Ravens coach John Harbaugh was immediately impressed by Buffalo quarterback Josh Allen’s competitive fire following their first face-to-face encounter in an NFL setting. It happened in the 2018 season opener, when the then-raw rookie Bills quarterback was shoved into the Ravens’ sideline. Allen hopped up and exchanged words with players […]

Read More

popular categories

Copyright © 2021 Panorama Hispano News. All Rights Reserved.
crossmenuchevron-downmenu-circlecross-circle
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram