Oil rises as Libyan oilfields shut down

Oil rises as Libyan oilfields shut down

Oil prices rose to their highest in more than week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, risking reducing crude flows from the OPEC member to a trickle, Trend with reference to Reuters reports.

Brent crude LCOc1 was up 37 cents, or 0.6%, at $65.22 by 0952 GMT, having earlier touched $66 a barrel, the highest since Jan. 9.

The West Texas Intermediate CLc1 contract was 24 cents, or 0.4%, higher at $58.78 a barrel, after rising to $59.73, the highest since Jan. 10.

Two major oilfields in southwest Libya began shutting down on Sunday after forces loyal to Khalifa Haftar closed a pipeline, potentially cutting national output to a fraction of its normal level, the National Oil Corporation (NOC) said.

The closure, which follows a blockade of major eastern oil ports, risked taking almost all the country’s oil output offline

However, the earlier rise in oil prices eased after some analysts and traders said supply disruptions in Libya could be offset by other producers, limiting the impact on global markets.

“The oil market remains well supplied with ample stocks and a healthy spare capacity cushion. In other words, the bullish price impact may prove to be fleeting,” said Stephen Brennock of oil broker PVM.

Takashi Tsukioka, president of the Petroleum Association of Japan (PAJ), also told a news conference that oil prices may fluctuate due to the latest incidents, but “we don’t have to worry too much about demand and supply balance as OPEC can cover shortfalls.”

If Libyan exports are halted for any sustained period, storage tanks will fill within days and production will slow to 72,000 barrels per day (bpd), an NOC spokesman said. Libya has been producing around 1.2 million bpd recently.

“A prolonged disruption from Libya would be enough to swing the global oil market from surplus to deficit in 1Q20,” said ING analyst Warren Patterson, referring to the first quarter of 2020.

The EU’s top diplomat Josep Borrell said on Monday the European Union will discuss all ways to uphold a formal ceasefire in Libya but any peace settlement would need real EU support to make it hold.

Foreign powers agreed at a summit in Berlin on Sunday to shore up a shaky truce in Libya which has been in turmoil since the fall of Muammar Gaddafi in 2011.

Trump calls nuclear disarmament with Russia world’s biggest problem
Trump calls nuclear disarmament with Russia world’s biggest problem
Container cargo transportation between Kazakhstan and Turkey via Azerbaijan ramps up greatly
Container cargo transportation between Kazakhstan and Turkey via Azerbaijan ramps up greatly
Info on 1H2020 cargo shipment via Turkish Mersin port disclosed
Info on 1H2020 cargo shipment via Turkish Mersin port disclosed
Loading Bars
Latest
Trump calls nuclear disarmament with Russia world’s biggest problem
Container cargo transportation between Kazakhstan and Turkey via Azerbaijan ramps up greatly
Info on 1H2020 cargo shipment via Turkish Mersin port disclosed
Kazakhstan's export of locally-made goods to Czech Republic increases
Agriculture Minister: Georgia may become sizable almond exporter
New COVID-19 cases spotted in Kazakhstan in past day
Brazil reports 52,160 more COVID-19 cases, 1,274 new deaths
UK finance minister weighs delaying autumn budget on 2nd COVID-19 wave
Over 40 injured in street clashes in Beirut - Red Cross
Israel reports 1,871 new COVID-19 cases, 86,593 in total
Rocket hits Green Zone in Iraq's capital
Turkey reports 1,183 new COVID-19 cases, 243,180, in total
Trump surprised Biden picked Kamala Harris as running mate
Iran calls for more regional cooperation against COVID-19
Number of COVID-2019 cases across globe up by over 216,000 in past day — WHO
Boeing 737 MAX cancellations rise, deliveries drop as crises drag on
Germany issues travel warning for Madrid due to coronavirus
Biden picks Kamala Harris as running mate
Africa's confirmed COVID-19 tally pass 1.05 mln as death toll surges to 23,582
Quality certificate of oil equipment in Iran to be issued within 90 days
Death toll from Beirut port blast up to 171
Kazakhstan, Romania boost mutual trade
Permanent container shipping line to be established between Iran, Russia
Georgia to receive macro-financial assistance from EU
Turkey unveils six-month cargo shipment through its Gemlik port
Azerbaijani Cabinet of Ministers amends decision on accepting customers in catering facilities during COVID-19
Facebook removes seven million posts for sharing false information on coronavirus
Israel scrutinizes Russian coronavirus vaccine
UK PM confirms 300-mln-pound funding for hospitals in England
U.S. COVID-19 cases surpass 5.1 mln: Johns Hopkins University
Volumes of 1H2020 dolomite transshipment through Turkish ports disclosed
Georgian ministry reveals volume of exported potatoes
Benzol transshipment via Turkey's ports during 1H2020 disclosed
National Bank of Georgia reveals volume of net profit received by banking sector
Germany, UK to persuade US to temporary lift sanctions against Iran
Cargo transshipment via Turkey's Iskenderun port for six months revealed
Georgian Health Ministry purchases rapid COVID-19 tests
Georgian Tskali Margebeli reveals volume of mineral water to be exported to Japan
AzEduNet seeking to attract investments for transferring schools to optic connection
Georgian olive oil replaces over 20% of imports
Iranian fisheries company interested in exporting their products to Turkmenistan
Russia's Ministry of Agriculture: Russia expands range of exports to Uzbekistan
Switzerland finances digital learning project of Uzbekistan
National Bank of Pakistan cease to operate in Uzbekistan
Iranian Energy Exchange announces products for sale on August 12
Thermal power plant to be commissioned in Iran's Shiraz industrial park
Bentonite transshipment via Turkey's ports in 1H2020 unveiled
Turkey reveals cargo shipment from Ukraine via its ports in 1H2020
Volume of wheat purchased in Iran's Kurdistan Province revealed
Coronavirus patients covered by supplementary insurance in Iran
Ukrtransnafta reveals volume of Azerbaijani oil transportation
Iran discloses number of stations being built in Iran's Shiraz county
Vienna University of Technology has announced admission for the first Master's program in Baku
Price for cars may decline in Iran
General Motors' Dhivya Suryadevara steps down as CFO
Kazakhstan increases oil export, petroleum goods production
Volume of wheat purchased in Iran announced
Return of blocked deposits in closed banks in Azerbaijan to begin in few days
Azerbaijan's Constitutional Court decides in favor of citizens on deposits in closed banks
Sale of Iran's oil bonds to bring profit to buyers
Afghanistan’s activity at Turkmen State Commodity Exchange in July 2020
Кazakhstan Electricity Grid Operating Company to buy construction materials via tender
Demand of Azerbaijani banks at Central Bank's currency auction fully met
Iran to review possible withdrawal from nuclear deal before US elections
Kazakhstan’s freight transportation operator opens tender for equipment maintenance
Iran's oil bonds not profitable during foreign currency crisis
Iran uses domestic nanotechnology to paint coating of airplanes
Insurance sector’s premiums up in Georgia
New inflow of natural gas received at Turkmenistan's Tajibay field
Uzbekistan aims to boost production of cement, construction materials
Iranian economist: Selling oil bonds - win-win deal
Turkish president receives Azerbaijani Foreign, Defense Ministers
Azerbaijan confirms 214 more COVID-19 recoveries
Uzbekistan establishes joint Uzbek-German asphalt production enterprise
Turkmenistan exports large volume of vegetables, fruits to EAEU countries
Iran's Shazand Oil Refining Company reveals amount of fuel produced for ships
Kazakhstan's foreign exchange reserves up month-on-month
Georgian Products Renaissance company expands export of its products
Saudi arabian company to build gas turbine power station in Uzbekistan
Prices of precious metals change in Azerbaijan
Turkmenistan increases tomato exports to EAEU
Georgian citizens arriving in Finland not to undergo compulsory quarantine
Uzbek-Korean JV to buy industrial vacuum cleaners via tender
Kazakhstan's import of Austrian-made goods plummets during COVID-19
Turkey unveils 1H2020 volume of gasoil movement through its ports
Mevlut Cavusoglu: Turkey always next to fraternal Azerbaijan
Azerbaijan's PM holds phone talk with CEO of BP Group
Iran’s Bahar Azadi gold coin price continues to rise
Iran talks about details of dairy products export
Volume of gas injected into storages in Azerbaijan disclosed
Turkish Anadolu news agency publishes interview with Azerbaijani MP Sevil Mikayilova on Azerbaijani-Turkish relations
Russia is first to register COVID-19 vaccine worldwide
French privacy watchdog opens preliminary investigation into TikTok
Azerbaijani currency rates for August 11
Demand for coal in Uzbekistan increases
Georgian Partnership Fund to sell its shares in Telasi energy distributor company
Design of upper block for Azerbaijan's Karabakh field being developed
Home purchases in Israel at 10-year peak in June
Iran's Tehran Oil Refining Company to boost its production
South Korean company to build cement plant in Uzbekistan
All news