U.S. oil climbs to five-week top on geopolitical tensions

Bs_logoImage
Reuters SINGAPORE
Last Updated : Apr 11 2017 | 6:33 AM IST

SINGAPORE (Reuters) - U.S. crude oil rose for a sixth consecutive session on Tuesday to hit its highest level in five weeks, underpinned by tensions following a U.S. missile strike on Syria and a shutdown at Libya's largest oilfield.

U.S. West Texas Intermediate (WTI) crude futures were up 10 cents, or 0.2 percent, at $53.18 a barrel by 0009 GMT. The market has gained for six sessions in a row, its longest rising streak this year.

The international benchmark, Brent crude futures , gained 9 cents, or 0.2 percent, at $56.07 per barrel.

Libya's Sharara oilfield was shut on Sunday after a group blocked a pipeline linking it to an oil terminal, a Libyan oil source said. The field had only just returned to production, after a week-long stoppage ending in early April.

The outage added to a rally that started late last week after the United States fired missiles at a Syrian government air base.

While Syria produces only small volumes of oil, the Middle East is home to more than a quarter of the world's oil output.

The gain in oil prices comes despite rising U.S. shale oil production.

"Crude oil prices were firmer as oil investors shrugged off rising U.S. supplies and looked forward to the summer driving season," ANZ said in a note.

U.S. crude inventories touched record highs both at the U.S. storage hub of Cushing, Oklahoma, and in the U.S. Gulf Coast in recent weeks, according to U.S. government data.

Oil prices have also been supported by a deal led by the Organization of the Petroleum Exporting Countries to cut output by 1.8 million barrels per day for the first six months of 2017, to get rid of excess supply. Libya and fellow OPEC member Nigeria are exempt from cuts.

In a sign of OPEC confidence that the deal is working, Kuwait's oil minister said he expected producers' adherence in March to their supply cut pledges to "be higher than the previous couple of months."

(Reporting by Naveen Thukral; Editing by Richard Pullin)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Apr 11 2017 | 5:58 AM IST