NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
Oil hits 2-1/2 year highs on Libyan pipeline blast

By Devika Krishna Kuma on 27/12/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 827


Oil prices touched two-and-a-half year highs in light volume on Tuesday, boosted by an explosion on a crude pipeline in Libya and voluntary OPEC-led supply cuts.

Libya has lost around 90,000 bpd of crude oil from a blast on a pipeline feeding Es Sider port, a Libyan oil source said, adding that NOC was still assessing the damage.

A Libyan military source said earlier that armed men had planted explosives at the pipeline.

The country’s output had been recovering in recent months after being held down for years by conflict and unrest.

Brent crude, the international benchmark for oil prices, rose $1.51, or 2.31 percent, to $66.76 a barrel by 11:40 a.m. (1640 GMT.) Prices hit a session high of $66.83 a barrel, the highest since late May 2015.

U.S. crude climbed $1.29, or 2.21 percent, to $59.76 a barrel after touching a session high of $59.86, the highest since late June 2015.

The impending restart of a key North Sea pipeline, Forties, limited the rally. The pipeline is being tested after repairs and full flows should resume in early January, its operator said on Monday.

“Keep in mind that the field and pipeline are old and it may have issues and it’s probably why the market isn’t selling off,” said Scott Shelton, broker at ICAP in Durham, North Carolina.

Trading activity was thin because of the Christmas holiday in many countries. Just 50,000 contracts of front-month Brent crude futures changed hands on Tuesday, well below the typical daily average of more than 250,000 contracts.

Brent has risen 17 percent while U.S. crude has rallied about 11 percent in 2017. The Organization of the Petroleum Exporting Countries, plus Russia and other non-members, have been withholding some output since Jan. 1 to get rid of a glut.

The producers have extended the supply cut agreement to cover all of 2018.

Iraq’s oil minister said on Monday there would be a balance between supply and demand by the first quarter, leading to a boost in prices. Global oil inventories have decreased to an acceptable level, he added.

That is earlier than predicted in OPEC’s latest official forecast, which calls for a balanced market by late 2018.

U.S. shipments to China, one of the biggest oil consumers in the world, have benefited from the OPEC-led output cuts. Russia, however, was China’s largest crude oil supplier for the ninth month in a row in November, also topping Saudi Arabia for the year so far, Chinese customs data showed on Tuesday.

While the OPEC action has lent support to prices all year, the unplanned shutdown of the Forties pipeline on Dec. 11 pushed Brent to its 2-1/2 year high.

Forties is the biggest of the five North Sea crude streams underpinning Brent, the benchmark for oil trading in Europe, the Middle East, Africa and Asia.

Still, rising production in the United States is offsetting some of the OPEC-led cuts.

The U.S. rig count, an early indicator of future output, held at 747 in the week to Dec. 22, according to the latest weekly report by Baker Hughes. (Reuters)

 

Source News Express

Posted 27/12/2017 11:51:05 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
TDSF, NDLEA launch student’s handbook on drug abuse...

Shoreline Energy signs $300mn gas deal with Shell...

Kano pays N460m accommodation subsidy for 2016 Hajj...

Niger Delta demands establishment of Petroleum Industry Tribunal...

Trump and I: My sack story — Ex-US...

Aregbesola dismisses rumour of school fees increase in...

Nigeria welcomes US troops for Cameroon over Boko...

Facebook Love: Nigerian man dumped by fiancée finds...

717 pilgrims now confirmed killed in Hajj stampede...

Airtel introduces world’s first FREE intercontinental incoming roaming...

Niger Govt. to partner police on improved security...

Tough times for Nigerian, Ghanaian immigrants in China’s...

 

Latest News NNPC loses N546b in 3 years Gunmen kill 12 in market attack 2019: Okorocha cries out, alleges gang-up PDP, SDP, ADC consider joint presidential candidate 100 Edo secondary students trafficked to Libya 11,254 jobs lost, 13 firms shut in food, beverage sector Stop persecuting Igbo Jews - Group warns Buhari Former APC chieftain apologises to Jonathan, admits Buhari has failed Nigerians Why Buhari may not sign 2018 budget –Minister FG plans to assassinate me - Gov. Wike APC, nPDP in talks to avert Saraki, Dogara, others exit Career politicians deceiving Nigerians with rotational presidency — Moghalu

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (345,021 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (341,666 views) Shameless Genevieve Nnaji exposes breasts in public (273,134 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (224,550 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (205,034 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (202,550 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (176,749 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (159,049 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (150,066 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (143,228 views) Lagos plane crash: Journalist releases victims’ names (139,869 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (132,270 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (40) Business & Economy (3,137) Business Verdict (43) Columnists (853) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (497) Features (594) Global Business Monitor (273) International (1,968) Interview (149) Live Commentary (28) Love Matters (120) News (35,464) Opinion (954) Pidgin (10) Politics (5,029) Religion (742) Sports (1,512) Stock Watch (29) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement