Oil Hits Two-Week High on Supply Risks From Venezuela to Libya - Bloomberg:
Oil climbed to the highest level this month as sanctions on Rosneft Trading and escalating tensions in Libya threatened global crude supply.
Futures rose as much 2.5% in New York on Wednesday. The U.S. sanctioned a unit of Russia’s Rosneft PJSC for maintaining ties with Venezuela’s Nicolas Maduro and the state-run oil company, putting Venezuela’s ability to export crude in jeopardy. Meanwhile, cease-fire talks were suspended in Libya after the capital’s port was shelled by forces loyal to military commander Khalifa Haftar, who has forced a blockade of the country’s exports.
“There’s no doubt the market is getting a lift from Libya and sanctions,” said Mike Hiley, head of OTC energy trading with LPS Partners. “The coronavirus is slowly moving to the back of people’s minds. The shape of the curve has improved and indicates there is some demand for product.”
China, the world’s biggest oil importer, is considering steps to shore up its economy, such as direct cash infusions and mergers to revive its airline industry, in the midst of the coronavirus outbreak.
Oil climbed to the highest level this month as sanctions on Rosneft Trading and escalating tensions in Libya threatened global crude supply.
Futures rose as much 2.5% in New York on Wednesday. The U.S. sanctioned a unit of Russia’s Rosneft PJSC for maintaining ties with Venezuela’s Nicolas Maduro and the state-run oil company, putting Venezuela’s ability to export crude in jeopardy. Meanwhile, cease-fire talks were suspended in Libya after the capital’s port was shelled by forces loyal to military commander Khalifa Haftar, who has forced a blockade of the country’s exports.
“There’s no doubt the market is getting a lift from Libya and sanctions,” said Mike Hiley, head of OTC energy trading with LPS Partners. “The coronavirus is slowly moving to the back of people’s minds. The shape of the curve has improved and indicates there is some demand for product.”
China, the world’s biggest oil importer, is considering steps to shore up its economy, such as direct cash infusions and mergers to revive its airline industry, in the midst of the coronavirus outbreak.
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