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Oil Rises on Libya Strikes, Expected US Supply Drop

Tuesday, 13 Aug 2013 04:22 PM

Oil prices rose following fresh oil supply disruptions in Libya and in anticipation of a bullish U.S. oil inventory report.

U.S. benchmark West Texas Intermediate for September delivery advanced 72 cents to $106.83 a barrel on the New York Mercantile Exchange.

European benchmark Brent oil for September delivery gained 85 cents to $109.82 a barrel.

Commerzbank analyst Carsten Fritsch cited strikes yesterday at Libya's two largest oil export terminals in Es Sider and Ras Lanuf that shut down the facilities.

"The supply outages in Libya are lending buoyancy," Fritsch said.

Libyan oil exports plunged by more than 70 percent at the end of July after protesters, including policemen and border guards, forced terminals to shut over demands for back pay.

Production and exports appeared to be resuming days later, but the strikes returned this week to tie up the terminals.

Market watchers meanwhile expect Wednesday's weekly U.S. oil inventory report to show a decline of 1.5 million barrels, suggesting firmer demand.

"There's an expectation of a draw tomorrow," said Gene McGillian, broker and analyst at Tradition Energy.

He said the Wednesday report will likely be a catalyst for the oil market.

"The market is kind of meandering between $103 and $108 trying to find a direction," McGillian said.

 

© AFP 2017

 
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Oil prices rose following fresh oil supply disruptions in Libya and in anticipation of a bullish U.S. oil inventory report.
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2013-22-13
Tuesday, 13 Aug 2013 04:22 PM
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