Oil prices up 2% on supply outages, Brent closes at $111
LONDON: Oil prices rose 2% on Friday, recouping most of the previous session’s declines, as supply outages in Libya and expected shutdowns in Norway outweighed expectations that an economic slowdown could dent demand.
Brent crude futures were up $2.07, or 1.9%, at $111.10 a barrel by 0911 GMT, having dropped to $108.03 a barrel earlier in the session.
WTI crude futures gained $1.80, or 1.7%, to $107.56 a barrel, after retreating to $104.56 a barrel earlier.
Both contracts fell around 3% on Thursday, ending the month lower for the first time since November.
We “still see risks to prices as skewed to the upside on tight inventories, limited spare capacity and muted non-OPEC+ supply response,” Barclays said in a note.
Libya’s National Oil Corporation declared force majeure on Thursday at the Es Sider and Ras Lanuf ports as well as the El Feel oilfield. Force majeure is still in effect at the ports of Brega and Zueitina, NOC said.
Production has seen a sharp decline, with daily exports ranging between 365,000 and 409,000 bpd, a decrease of 865,000 bpd compared to production in “normal circumstances”, NOC said.
Elsewhere, 74 Norwegian offshore oil workers at Equinor’s (EQNR.OL) Gudrun, Oseberg South and Oseberg East platforms will go on strike from July 5, the Lederne trade union said on Thursday, likely halting about 4% of Norway’s oil production.
Oil prices are expected to stay above $100 a barrel this year as Europe and other regions struggle to wean themselves off Russian supply, a Reuters poll showed on Thursday, though economic risks could slow the climb.