Oil climbs as Venezuela sees output deal, Libya suffers clashes


SINGAPORE : Oil prices rose almost 2 percent on Monday after Venezuela said OPEC and non-OPEC producers are close to reaching an output deal.

Venezuelan President Nicolas Maduro has said that a deal could be announced this month to stabilize oil markets which have come under pressure due to a persistent glut and a price collapse over the past two years.

Brent crude futures were at $46.54 per barrel from their previous settlement. U.S. crude was up 78 cents, at $43.81 a barrel.

Clashes in Libya have halted the loading of the first oil cargo from the port of Ras Lanuf in close to two years, while raising fears of a new conflict over Libya’s oil resources.

Brent and WTI prices had been dragged to multi-week lows on Friday amid worries returning supplies from Libya would add to the global supply glut.

Concerns over rising supplies remain a bugbear on sentiment.

Crude exports from No.3 OPEC producer Iran in August jumped 15 percent from a month ago to more than 2 million barrels per day, according to a source with knowledge of its tanker loading schedule, closing in on Tehran’s pre-sanctions shipment levels of five years ago.

In the United States, drillers have added oil rigs for 11 out of the past 12 weeks. Drillers added two oil rigs in the week to Sept. 16, bringing the total rig count up to 416, the most since February.

Source : Reuters




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