Oil rises on supply constraints

Supply cuts from Venezuela, Libya and Iran support perceptions of a tightening market


Reuters April 13, 2019
PHOTO: REUTERS

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.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Our Publications

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ