Oil rises yet again as supply disruption lurks the market

After successfully keeping the surging oil prices in control over the last few weeks, Tuesday July 17th 2018 observed another jump in prices as a result of looming prospects of another disruption in oil supply. 

An oil worker strike built up in Norway over pension and salary reforms, and on Monday, hundreds of workers walked out as a sign of protest. So far, the supply has only been effected slightly, but in case the strike carries on for more than a month, there are expectations regarding contract cancellations.  

Brent crude features had climbed 28 cents, or 0.4 percent, to $72.12 a barrel by 0331 GMT. They fell 4.6 percent on Monday, at one point touching their lowest since mid-April.

U.S. West Texas Intermediate (WTI) futures were down 1 cent at $68.05. They fell 4.2 percent on Monday.

“The threat of further supply disruptions hasn’t totally evaporated,” ANZ said in a morning note. They further added, “Production from Libya remains susceptible to further declines, despite its ports reopening”.

Although Libyan ports are all set to resume operations, output at Sharara oilfield was expected to descent by around 160,000 barrels per day (bpd) after the abduction of two workers by an unknown group.