Oil rises on supply constraints
Supply cuts from Venezuela, Libya and Iran support perceptions of a tightening market
LONDON:
Oil prices rose on Friday as involuntary supply cuts from Venezuela, Libya and Iran supported perceptions of a tightening market, already underpinned by a production reduction deal from OPEC and its allies. Brent crude oil futures were at $71.67 a barrel at 1044 GMT, up $0.84 and heading for a weekly gain of 1.9%, their third weekly gain in a row. US West Texas Intermediate (WTI) crude futures were at $64.53, up $0.95 and set for a weekly rise of 2.3%, their sixth straight week of gains. “For the momentum to continue next week, WTI needs to close today (Friday) above $64 a barrel and preferably break the resistance of $65 a barrel. Volume has been very strong throughout the week,” said Petromatrix’s Olivier Jakob. Oil markets have been lifted by more than a third this year by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC), US sanctions on oil exporters Iran and Venezuela, plus escalating conflict in Libya.
Published in The Express Tribune, April 13th, 2019.
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