Price of oil rose to $80 per barrel as supply-disruptions worsen
Stephen U.C, Petroleum news, Port-harcout
The upsurge in crude oil prices at the beginning of the year has been interpreted as a sign of better days ahead for Nigeria but there is cause for alarm for the ordinary citizen, Petroleum news noted.
The price of crude oil hit more than three-year high last week rising to $80 per barrel for the first time since December 2015.
Oil rose on Tuesday, supported by gains in equities and supply concerns in Norway and Libya.
Brent crude futures hit a session high of 79.51 dollars.
Oil reports correlation expert says Brent races to 100 dollars, in spite of despicable manipulations.
United States crude futures rose to settle at high of 74.70 dollars.
All three major stock indexes were up, with the S&P 500 at a four-month high.
At 4:30 p.m., the API is scheduled to release its U.S. inventory data for last week. Analysts expect inventories to have declined.
Last month, the United States said it wanted to reduce oil exports of fifth-biggest producer Iran to zero by November.
Still, Brent was buoyed by a strike by hundreds of workers on Norwegian offshore oil and gas rigs, leading to the shutdown of one Shell-operated oilfield.
“Working in the opposite direction of the Norwegian oil workers strike and the geopolitical situation” was the update on the Syncrude oil sands facility, said Yawger at Mizuho.
On Monday, Suncor Energy said its 360,000-barrel-per-day Syncrude facility would resume some production in July, earlier than expected, following an outage last month that disrupted total output and sent U.S. prices higher.
The updated timeline has muted U.S. price gains and widened the difference between the two benchmarks, said Yawger.
Meanwhile, members of the Organisation of the Petroleum Exporting Countries, led by Saudi Arabia, have agreed to boost output.