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LONDON – Oil prices climbed Monday after a week of volatile trading, as the market refocused on potential supply disruptions globally.
Brent, a global benchmark, rose 1.09% to $ 77.67 a barrel on the London Intercontinental market. On the New York Mercantile Exchange, West Texas Intermediate futures rose 0.87% to $ 68.35 per barrel.
"At the moment, supply events continue to drive down oil prices," according to Tamas Varga, an analyst at PVM Oil Associates Ltd.
"Oil investors have not yet lost confidence because of the imminence of Iranian sanctions," he added.
US sanctions on the Iranian oil industry are expected to take effect in November, but the country has already seen a drop in its exports, which has tightened the oil market. Officials of the National Iranian Oil Co. predict that crude deliveries are expected to drop to about 1.5 million barrels a day this month, compared to 2.3 million barrels a day in June, according to people close to the record. .
In May, President Trump withdrew the United States from a 2015 international agreement to curb the Iranian nuclear program, paving the way for the reimposition of economic sanctions. The move allowed Brent to temporarily exceed $ 80 per barrel for the first time in more than three and a half years.
Moreover, the headquarters of the Libyan national oil company in Tripoli was targeted on Monday by a terrorist attack, which could anticipate further disruption of Libyan supply.
Friday, oil prices "ended the week on a slightly firmer basis, after a corrective movement of the week that had passed Brent more than 79 dollars to 76 dollars a barrel," said Monday analysts JBC cabinet Energy. .
The liquidation "took place as part of a broader movement that also saw equities and other commodities economically sensitive under pressure from the saga of the Sino-US trade war," analysts added.
Prices also came under pressure last week as investors weighed on emerging market weaknesses and the potential negative impact on global oil demand.
But Bjarne Schieldrop, Senior Commodity Analyst at SEB Markets, argued that concerns over a trade war and emerging market equities and currencies should ease in the months to come. "Brent will probably arrive at the end of the year for 2018," he said.
Analysts and investors look into monthly oil market reports from the Organization of Petroleum Exporting Countries and the International Energy Agency, in the run-up to increasing OPEC production in the month latest.
Among the refined products on Monday, the reformulated Nymex gasoline blend – the benchmark gasoline contract – rose 1.12% to $ 1.99 a gallon. ICE diesel, a benchmark for diesel fuel, changed hands at $ 687 per tonne, up 1.44% from the previous one.
– Benoit Faucon contributed to this article.
Write to Christopher Alessi at [email protected]
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