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: 778


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...
General Vatsa’s son dies after brief illness

FMC Owerri Resident Doctors threaten indefinite strike

Kogi APC group alleges intra-party plot to stop...

19 soldiers, 3 civilian JTF wounded in Boko...

Of criminal Fulani herdsmen and uncultured Kwakwanso, By...

A haunting past

Bribery: Court orders ex-MINT boss extradited to UK...

Corrupt officials should rot in jail, looted money...

Police storms baby factory in Akute-Ajuwon (Ogun State),...

Ekweremadu pledges National Assembly’s support to International Criminal...

Updated: Youths kill Pastor, burn church in Katsina...

30 killed in fresh Zamfara attacks

 

Latest News BREAKING: Senator Dino Melaye arrested, moved to SARS Headquarters UBA shareholders approve N22.23bn dividend for 2017 Lawmaker loses 10 family members in road accident Drug Abuse: Over two million bottles of codeine consumed daily in Kano Protesters storm Melaye's residence as security operatives invade premises 2018 budget: MDAs have complied with FG’s directives –Akabueze …Says 2019 elections won’t affect implementation Dangote Cement appoints Makoju Managing Director/CEO Atiku to unveil agenda for Nigeria Wednesday JOHESU Strike: FG sets up committee to review unions’ demand Sex for marks: OAU asks Monica Osagie, to appear before panel Tuesday Ekiti 2018: Buhari grants Fayemi leave of absence as minister Zamfara Govt. increases corps members’ allowance ahead of 2019 elections

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (339,682 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (334,670 views) Shameless Genevieve Nnaji exposes breasts in public (267,811 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (220,213 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (202,119 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (198,129 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (172,855 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (155,215 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (147,135 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (139,053 views) Lagos plane crash: Journalist releases victims’ names (136,911 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (129,599 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (36) Business & Economy (3,069) Business Verdict (40) Columnists (836) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (483) Features (569) Global Business Monitor (264) International (1,924) Interview (149) Live Commentary (28) Love Matters (116) News (34,705) Opinion (916) Pidgin (10) Politics (4,808) Religion (723) Sports (1,484) Stock Watch (28) AMA & Al Jazeera Global Update

 

 

NLNG Science and Literature Prize Awards

 

 

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