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Home / Business / Oil climbs to 5 months heights when Libyan conflict provides expectations for tighter global supplies

Oil climbs to 5 months heights when Libyan conflict provides expectations for tighter global supplies



Oil futures climbed to fresh five-month highs on Monday, with US prices rising above $ 64 a barrel for the first time since late October, when the fighting in Libya fed expectations of tighter global supplies.

Points out that trade tensions are relief between the United States and China also provided support for oil prices.

US reference West Texas Intermediate crude for May delivery

CLK9, + 2.17%

on the New York Mercantile Exchange increased by $ 1

.32 or 2.1% to pay $ 64.40 per barrel. Last month's contract prizes accounted for a sixth straight increase and marked the highest finish since October 31, according to Dow Jones Market Data. The contract rose 4.9% last week.

June Brent

LCOM9, + 1.07%

increased 76 cents, or 1.1%, to $ 71.10 per barrel at ICE Futures Europe. The settlement was highest for a contract in advance since November 7. Brent rose 4.1% for the week, for its second consecutive positive weekly performance.

The US military said it drew a small contingent of US forces from Libya as the country stroked the brim of full-scale civil war, with struggles continuing around the capital Tripoli.

The evacuation is the last turn in a troubled history of US military involvement in Libya, which has been in turmoil since the crash of Moammar Gadhafi in an armed rebellion supported by the North Atlantic Treaty Organization airstrikes in 2011. US forces have also played a key role in rebellion by Islamic state, which gained a foothold in Libya in the chaos that followed the Arab spring.

"The self-proclaimed Libyan National Army (LNA) led by Khalifa Haftar has launched an offensive to take the capital of Tripoli from [United Nations] -backed Government of National Accord (GNA)," said Robbie Fraser, global trade analyst at Schneider Electric .

"While the trend on Tripoli does not directly threaten oil exports and deliveries, the threat of sanctions creates significant upside risks, especially as the market is already facing tight supply conditions for sanctions against Venezuela and Iran," he said in a Monday note.

The situation, coupled with ongoing production cuts from the Organization for Petroleum Exporting Countries and Russia and US sanctions against Venezuela and Iran, creates "a very lonely place for those looking for lower prices, especially President Trump who is now facing the highest seasonal gasoline cost for US gas. since 2014, says Ole Hansen, head of trading strategy at Saxo Bank. He also said that a Bloomberg survey pricey Libya's raw production reached 1.1 million barrels a day last month.

Read: Petrol prices up 8 straight weeks, with California on track to pay the most in nearly 5 years

In another sign of increasing tensions, the Trump administration prepared on Monday to designate Iran's Islamic revolutionary guard Corps as a foreign terrorist organization, The Wall Street Journal reported , and quoted US officials.

Meanwhile, there are reports that China's state-owned energy Irin Sinopec had resumed the purchase of US oil, which was bullish for the oil market, said the consulting firm JBC Energy. According to the US Energy Information Administration, US crude exports to China were dried up from mid-2018 over the past few weeks, having averaged over 300,000 barrels a day in the first half of last year.

"During Q1, this has left a crude export stream more than twice the size of Libya to deliver the rest of the world, where raw demand growth has slowed," the JBC Energy analysts said in a note.

A stronger than expected increase in March's non-wage salaries helped reassure energy demand concerns, which boosted oil prices last week. Data from the oilfield company Baker Hughes showing that the number of US oil rigs increased by 15 this week to 831, did nothing to clear the market gains.

The oil market also looked at this week's main bond problem from Saudi Aramco. Bloomberg reported Monday that the company has received $ 60 billion in orders for debut.

It is well over $ 10 billion projected when the sale was announced first. The agreement, from the state-controlled company that is the world's richest, has a high credit rating and will generate revenue for a $ 69.1 billion purchase of a majority stake in Sabic's petrochemical company.

In other energy trading, may petrol

RBK9, + 1.01%

rose 1% to $ 1,988 a gallon, the highest finish for a contract in advance since October 10. Can heat oil

HOK9, + 0.71%

ended 0.7% higher, to $ 2.057 per gallon.

Can natural gas

NGK19, + 1.80%

rose 1.7% to $ 2.708 per million British thermal units.

Sarah McFarlane contributed to this article.

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