LONDON – Oil prices rose Friday, holding in excess of three-year highs, supported by continued supply shortages in Libya, Iran and North America.
Brent Crude, the global benchmark, rose 1.2% to $ 78.61 a barrel on the London Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures climbed 0.2% to $ 73.57 a barrel.
Crude oil prices have been rising since the beginning of the week, with WTI and Brent up more than 7% and 5%, respectively.
The recent price increases have been exacerbated by a Libya dispute over oil marketing rights that is hampering the North African nation's export capacity. In Libya, the supply of up to 780,000 barrels of crude oil per day is at risk, according to the Commerzbank analysts.
"These supply failures could not come at a worse time in the face of a supply shortfall of 350,000 barrels per day due to the failure of a manufacturing facility in Canada and the US pressure on countries to cease oil importation completely in November," they said Analysts on Friday.
Trump government sanctions buyers of Iranian crude this week if they do not reduce their imports to zero by 4 November.
President Donald Trump freed the US last month from an international agreement to curb Iran's nuclear program, laying the groundwork for a repositioning of economic sanctions against the Islamic Republic, which was already expected to cut oil imports by about 2% Would hinder 4 million barrels per day.
Stronger US pressure on the Islamic Republic raised the prospect of Iran's oil increase c This development could be further restricted than many market observers had originally expected. Concerns about the dwindling global supply are helping to strengthen the market.
Prices were also bolstered this week by an unexpectedly sharp decline in US crude oil inventories for the past week June 22. The Energy Information Administration said this week that US crude oil inventories fell nearly 1
At the same time, infrastructure constraints in US shale have also limited supply expansion and supported prices.
"There are also fewer barrels available in the US Gulf Coast due to the lack of permeability capacity in the Perm basin," said Tamas Varga, brokerage analyst PVM Oil Associates Ltd.
Concerns about supply and price increases are coming to the beginning of increased production less than a week after the accession of the Organization of Petroleum Exporting Countries and their allies, including Russia. B) Up to 1 million barrels a day from next month
The move, after more than a year in which crude oil production was held back, should limit steadily rising prices and fill the gap of shrinking global inventories.
Among the refined products on Friday, Nymex reformulated gasoline mixed-fuel benchmark gasoline contract was up 2.61% at $ 2.11 a gallon. ICE gas oil, a benchmark for diesel fuel, moved to $ 670.75 a ton, 0.83% more than before.
Write to Christopher Alessi at [email protected]