LONDON: Oil prices rose around 2% on Friday, recouping most of the previous session’s declines as supply outages in Libya and expected shutdowns in Norway trumped expectations that a slowdown economy could weigh on demand, according to Reuters.
Brent crude futures were up $2.20, or 2%, at $111.23 a barrel at 1348 GMT, after falling to $108.03 a barrel earlier in the session.
WTI crude futures gained $2.25, or 2.1%, to $108.01 a barrel, after falling to $104.56 a barrel earlier.
Both contracts fell about 3% on Thursday, ending the month lower for the first time since November.
We “still consider price risks to be biased to the upside due to tight inventories, limited spare capacity and muted non-OPEC+ supply response,” Barclays said in a statement. note.
Libya’s National Oil Corporation declared on Thursday a case of force majeure at the ports of Es Sider and Ras Lanuf as well as at the El Feel oil field. Force majeure is still in effect at the ports of Brega and Zueitina, NOC said.
Production was down sharply, with daily exports between 365,000 and 409,000 bpd, down 865,000 bpd from production under “normal circumstances”, NOC said.
Elsewhere, 74 Norwegian offshore oil workers at Equinor’s Gudrun, Oseberg South and Oseberg East platforms will go on strike from July 5, the Lederne union said on Thursday, likely halting around 4% of production Norwegian oil.
The Ecuadorian government and leaders of indigenous groups reached an agreement on Thursday to end more than two weeks of protests that had led to the shutdown of more than half of the country’s 500,000 bpd oil production before the crisis.
On Thursday, the OPEC+ producer group, including Russia, agreed to stick to its production strategy after two days of meetings. However, the producers’ club avoided discussing politics from September.
Previously, OPEC+ decided to increase production each month by 648,000 barrels per day in July and August, against a previous plan to add 432,000 bpd per month.
US President Joe Biden will make a three-leg trip to the Middle East in mid-July, which includes a visit to Saudi Arabia, putting energy policy in the spotlight as the US and other countries grapple with soaring fuel prices that drive up inflation.
Biden said on Thursday he would not directly pressure Saudi Arabia to increase oil production to curb soaring prices when he sees the Saudi king and crown prince during a visit this this month.
A Reuters survey found OPEC pumped 28.52 million bpd in June, down 100,000 bpd from May’s revised total.
Oil prices are expected to stay above $100 a barrel this year as Europe and other regions struggle to wean themselves off Russian supplies, a Reuters poll showed on Thursday, although economic risks may ease. the rise.
India on Friday introduced export duties on diesel, gasoline and jet fuel to help maintain domestic supplies, while imposing a windfall tax on oil producers who have benefited from higher world prices crude oil.