Oil Pares Gains as Plentiful Supply Tempers Libya Disruption - Bloomberg:
Oil pared gains after rising to the highest in more than a week as projections of plentiful world supplies countered concern about disruptions in Iraq and Libya.
Brent futures climbed earlier to $66 a barrel as Libya’s oil production almost ground to a halt when armed forces closed a critical pipeline, shuttering output from the nation’s biggest oil project. In fellow OPEC nation Iraq, escalating protests stopped work at a minor field on Sunday.
In the past few months, oil markets have rallied after an attack on Saudi oil infrastructure in September and military confrontation between Iran and the U.S. this month, only for prices to drop once tensions subsided.
“The oil market has been conditioned to look past any immediate supply disruptions,” Daniel Ghali, a TD Securities commodity strategist, said by phone. “We really are in an oversupplied market.”
Brent crude rose 35 cents to $65.20 a barrel Monday on the ICE Futures Europe exchange, having earlier climbed 1.8% to $66, the highest since Jan. 9. West Texas Intermediate futures gained 12 cents to $58.66 a barrel in electronic trading on the New York Mercantile Exchange after rising 2% earlier. U.S. markets were closed Monday for the Martin Luther King holiday.
Oil pared gains after rising to the highest in more than a week as projections of plentiful world supplies countered concern about disruptions in Iraq and Libya.
Brent futures climbed earlier to $66 a barrel as Libya’s oil production almost ground to a halt when armed forces closed a critical pipeline, shuttering output from the nation’s biggest oil project. In fellow OPEC nation Iraq, escalating protests stopped work at a minor field on Sunday.
In the past few months, oil markets have rallied after an attack on Saudi oil infrastructure in September and military confrontation between Iran and the U.S. this month, only for prices to drop once tensions subsided.
“The oil market has been conditioned to look past any immediate supply disruptions,” Daniel Ghali, a TD Securities commodity strategist, said by phone. “We really are in an oversupplied market.”
Brent crude rose 35 cents to $65.20 a barrel Monday on the ICE Futures Europe exchange, having earlier climbed 1.8% to $66, the highest since Jan. 9. West Texas Intermediate futures gained 12 cents to $58.66 a barrel in electronic trading on the New York Mercantile Exchange after rising 2% earlier. U.S. markets were closed Monday for the Martin Luther King holiday.
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