Oil prices shoot up in Asia following unrest in Libya, hopes for output deal

Oil prices edged up in Asia on Monday as OPEC member Venezuela indicated a deal to limit output is close while fighting in Libya stopped it kickstarting exports, but gains were limited by ongoing worries about a supply glut.

PTI September 19, 2016 12:01:58 IST
Oil prices shoot up in Asia following unrest in Libya, hopes for output deal

Singapore: Oil prices edged up in Asia on Monday as OPEC member Venezuela indicated a deal to limit output is close while fighting in Libya stopped it kick starting exports, but gains were limited by ongoing worries about a supply glut.

Key crude states are due to meet in Algeria next week to discuss the global supply crisis and overproduction that has hammered prices for two years.

Oil prices shoot up in Asia following unrest in Libya hopes for output deal

Fighting erupted in Libya as UN backed unity govt forces attempted to retake oil ports. Reuters

On Sunday, Venezuela President Nicholas Maduro said participants in the talks — the OPEC cartel and Russia — are now working on a deal and that he had discussed the issue with his Iranian and Ecuadoran counterparts.

Without revealing details, Maduro said he hoped to make a concrete announcement by the month's end.

At about 0345 GMT, US benchmark West Texas Intermediate was up 79 cents at $43.82 and Brent rose 78 cents to $46.55. WTI sank 6.6 per cent last week and Brent fell 4.5 percent.

Crude has been dogged by a stubborn supply glut since late 2014, with prices hitting near 13-year lows at the start of this year. A previous attempt at a deal in April fell apart when Iran, which had just emerged from years of Western nuclear-linked sanctions, refused to take part.

OANDA senior market analyst Jeffrey Halley said in a note: "Noises from OPEC about a possible deal on production cuts, clashes around a Libyan export terminal scheduled to make its first deliveries since 2104 combined to see both Brent and WTI bounce anaemically."

Fighting erupted in Libya on Sunday as UN-backed unity government forces attempted to retake oil ports seized last week by a rival administration.

The fighting led a Maltese-flagged tanker to turn back out to sea for safety, abandoning plans to load crude oil at Ras Lanuf, which would have been the port's first export since 2014.

Libya has Africa's largest oil but has exported only a few tankers of crude in recent months as a result of unrest.

Traders are also keeping an eye on a Federal Reserve policy meeting this week hoping for fresh clues about the state of the world's top economy and some guidance on its plans for interest rates.

Updated Date:

also read

South Africa vs Pakistan: Quinton de Kock unlikely to face sanctions over Fakhar Zaman run out in 2nd ODI
First Cricket News

South Africa vs Pakistan: Quinton de Kock unlikely to face sanctions over Fakhar Zaman run out in 2nd ODI

After reviewing footage of the incident, match officials are believed to have come to the conclusion that de Kock was not in breach of the law on fielders deceiving batsmen.

Iran to enrich uranium to 60%, its highest level ever, after attack on Natanz nuclear facility
World

Iran to enrich uranium to 60%, its highest level ever, after attack on Natanz nuclear facility

Foreign Minister Javad Zarif said the attack, allegedly carried out by Israel, could hurt ongoing negotiations over Iran's nuclear deal with world powers

Imprisoned Kremlin critic Alexei Navalny 'could die at any moment', says his doctor
World

Imprisoned Kremlin critic Alexei Navalny 'could die at any moment', says his doctor

Navalny is in the third week of his hunger strike in protest against Russian authorities' refusal to let his personal physicians to visit him in prison