Oil prices on ebbs when frenzy accumulates over the world economy
Workers cross walkways between the zones aboard an offshore oil platform in the Persian Gulf's Salman oil field, near Lavan, Iran, January 5, 2017.
Ali Mohammadi | Bloomberg | Getty Images
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Brent crude futures rose 28 cents to $ 58.09 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude was $ 52.64, down 17 cents.
Both contracts were finalized last week with a fall of more than 5% following dismal US and China production data, as the prolonged ranks between the world's top economies hurt global growth and increased the risk of recession.
US and Chinese officials meet in Washington on October 1[ads1]0 – 11 in the next, much-awaited, fresh effort to reach an agreement.
On the supply side, a faster-than-expected resumption of Saudi Arabia's output also followed a September 14 attack on key production facilities, which pushed down oil prices, even though the Middle East remained tense.
"Macro headwinds offset oil supply problems now, despite tensions in the Middle East and a reduced reserve capacity cushion," said Stephen Innes, Asia Pacific market strategist at AxiCorp.
In Iraq, the second largest producer of the Petroleum Exporting Organization, deadly injustice against the government represents the biggest security and political challenge so far for Prime Minister Adel Abdul Mahdi's year-old government.
Iraqi oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for several weeks, said Ayham Kamel, Eurasia Group's Middle East and North Africa practice manager.
"Any disruption to oil production would occur at a time when Saudi Arabia has lost a significant portion of its energy system layoffs (available capacity)," he said.
"While Saudi oil production is now close to 9.9 million bpd, it is not clear that capacity is fully operational at 11.3 million bpd and (attacked) the Abqaiq plant has lost a significant portion of its redundancy."
Global supply also faces repair and maintenance pressures for plants.
The Buzzard oil field in the British North Sea is closed for pipe repair work, a spokesman from China's CNOOC said Friday. Buzzard is the main contributor to Forties & # 39; crude stream, the largest of the five North Sea oil grades that support Brent crude oil futures.
Meanwhile, Libya's National Oil Corporation (NOC) on Sunday said it will close the Faregh oil field at Zueitina port for scheduled maintenance from Monday to October 14.
