قالب وردپرس درنا توس
Home / Business / The oil price rises to a five-month high as the Libyan conflict raises expectations of a tighter global supply

The oil price rises to a five-month high as the Libyan conflict raises expectations of a tighter global supply



Oil futures rose to new 5-month highs on Monday, with US prices falling above $ 64 a barrel for the first time since the end of October, as the fighting in Libya raised expectations for a tighter global supply ,

Signs of Trading Volatility The easing between the US and China also helped oil prices.

USA Benchmark West Texas Intermediate crude for May delivery

CLK9, + 2.17%

on the New York Mercantile Exchange rose $ 1.32 or 2.1% to settle at $ 64.40 a barrel. Monthly contract prices earned a sixth-consecutive win, marking Dow Jones Market Data's highest since October 31

, according to Dow Jones Market Data. The contract rose 4.9% last week.

June Brent

LCOM9, + 1.08%

rose 76 cents, or 1.1%, to $ 71.10 a barrel at ICE Futures Europe. His agreement was the highest for a front month contract since 7 November. Brent rose 4.1% for the second consecutive time this week.

The US military claimed to have pulled a small contingent of American forces from Libya The country was on the verge of a civil war on a large scale, and the fighting over the capital Tripoli continued.

The evacuation is the latest reversal in a troubled history of US military involvement in Libya, which has been in turmoil since the fall of Tunisia in an armed uprising that was supported in 2011 by the North Atlantic Treaty Organization air raids. The US armed forces also played an important role in the suppression of the Islamic State, which had fought in Libya in chaos after the Arab Spring.

The self-proclaimed Libyan National Army (LNA) led by Khalifa Haftar has launched an offensive to take over Tripoli's [United Nations] National Agreement Government (GNA), the capital of Tripoli, "said Robbie Fraser, Global Commodity Analyst at Schneider Electric.

"While the move to Tripoli does not directly jeopardize oil exports and supplies, the threat of sanctions poses a significant upside risk, especially as the market is already facing tighter supply conditions due to sanctions against Venezuela and Iran," he said Note from Monday.

The situation, along with ongoing production cuts by the Organization of Petroleum Exporting Countries and Russia, as well as US sanctions against Venezuela and Iran, creates "a very lonely place for those seeking lower prices, especially for President Trump, now It has been exposed to the highest seasonal cost of US gasoline since 2014, "said Ole Hansen, head of commodity strategy for Saxo Bank, who also said that a Bloomberg survey related to Libya's crude oil production was 1.1 million barrels last month

Read: Gasoline prices soar in eight consecutive weeks, with California well on its way to paying the highest price in nearly five years as a foreign terrorist organization, the Wall Street Journal reported citing US officials.

There are now reports that China's state-owned energy company Si nopec resumed buying US oil, which was optimistic for the oil market, said consulting firm JBC Energy. According to the US Energy Information Administration, US crude oil exports to China dried up from mid-2018 to the last few weeks, after averaging over 300,000 barrels a day in the first half of last year.

"In the first quarter, this has left more than twice the crude oil export flow to the rest of the world, where demand for crude oil is subdued," the JBC Energy analysts said in a statement.

An unexpectedly sharp rise in non-farm levels in March helped ease concerns about energy demand, which boosted oil prices last week. Data from oil field service provider Baker Hughes, which showed that the number of US oil rigs rose by 15 to 831 this week, did not affect market profits.

The oil market also saw the main bond this week from Saudi Aramco. Bloomberg said on Monday it had received orders to sell $ 60 billion in debut bonds.

That's well over $ 10 billion when the sale was first announced. The state-controlled company's deal, one of the richest in the world, has high credit ratings and will generate proceeds of $ 69.1 billion from the purchase of a $ 700 billion majority stake in petrochemical company Sabic

RBK9, + 1.01%

rose 1% to $ 1,988 a gallon, the highest level for a front-month contract since October 10. heating oil

HOK9, + 0.71%

ended 0.7% higher at $ 2.057 per gallon.

May natural gas

NGK19, + 1.80%

rose 1.7% to $ 2,708 per million British thermal units.

Sarah McFarlane contributed to this article.

Providing critical information for the US trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.


Source link