Oil rose for the first time in five days as tensions in Libya and Iraq stoked concerns about supply from regional producers and the market anticipated fresh data reflecting a revival in the American economy.
Brent crude futures inched up 60 cents to US$107.33 by midday in London, ending their longest stretch of losses in five months. West Texas Intermediate increased by 43 cents to $93.86.
Religious fighters in Iraq pledged yesterday to resist an effort by the federal government to retake the city of Fallujah, adding to concerns about stability in Opec’s second largest producer.
In Libya, the navy opened fire on a tanker arriving to load up at El Sider port on Monday as the federal government struggled to regain control of its oil infrastructure. Stand-offs between the government and opposing militiamen, tribesmen and striking workers has taken an estimated 58 per cent of the nation’s export capacity offline and dampened output to a seventh of pre-civil-war levels.
Forecasts that the country will not be able to boost current output of 250,000 barrels per day (bpd) to more than 650,000bpd by the end of this year has counteracted a rise in hopes at the revival of output from the major Sharara field this week.
Analysts also expected another dip in stockpiles in the United States, which at last count stood at their lowest levels since September. The American Energy Information Administration is scheduled to release fresh data today.
ayee@thenational.ae