LONDON: Brent crude oil rose towards $107 a barrel yesterday as investors cast doubt on reports Libya’s oil ports were about to reopen, and anticipated higher US fuel demand as data showed strong jobs growth in the world’s biggest economy.
Expectations had been building that an eight-month blockage of Libya’s oil export ports would end after rebels and the government said they were close to an agreement.
The Libyan government said it had seen evidence of “good intentions” at indirect talks with eastern rebels which could lead to renewed exports.
But previous reports of ports reopening have proven false and investors suspect there will again be no breakthrough. “In the oil market it is Libya that is pulling the strings,” said David Hufton, managing director of London brokerage PVM Oil Associates. “High hopes of an imminent settlement with rebels in the east of the country have been punctured.”
May Brent crude was up 60 cents at $106.75 a barrel by 1300 GMT. US crude for May gained 96 cents to $101.25 a barrel. Front-month US crude was set to post its first weekly loss in three weeks. Oil had an additional boost from US non-farm payrolls figures showing 192,000 new jobs in March, evidence the US economy is accelerating after a bitterly cold winter.
Reuters
