Oil prices were on Hike in London on Monday, hopes are forward on U.S –China Trade talks, both future contracts ended last week between the United States and China, also supply challenges from major exporters would be discussed in the meet.
Officials of both the United States and China will meet in Washington on 10-11 Oct, with fresh efforts to work on the deal. U.S West Texas Intermediate (WTI) crude and CLc1 was up by 35 cents or 0.7% to $53.16 a barrel and Brent Crude LCOc1 increased by 34 cents or 0.6% to $58.71 a barrel.
The second-largest producer on the supply end, among the Organization of Petroleum Exporting Countries -Iraq is suffering from Anti –governmental conditions.
Iraq’s oil exports of 3.43 million barrels per day (BPD) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group’s practice head for the Middle East and North Africa, said in a note.
“Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity),” he said.
Pipe repair work has disrupted the supply from the major Buzzard oil field in the British North Sea as confirmed by China’s CNOOC on Friday.
Libya’s National Oil Corporation (NOC) said on Sunday it would close the Faregh oil field at Zueitina port for scheduled maintenance from Monday until Oct. 14.
“The Saudi attacks have quickly been forgotten about and global growth is back to being the main driver of oil markets,” said Craig Erlam, senior market analyst at OANDA.
“Such complacency could come back to bite oil traders as another aggressive spike will likely accompany any further escalation in the region.”
Though oil price hike on Monday, still it is 20% low from the peak of $75.60 a barrel recorded in April.