NEW YORK: Brent crude oil edged higher yesterday in choppy trading as reports of restarted production at a Libyan oilfield, which hinted at more supply, were outweighed by doubts about its ability to reach markets.
Libya’s armed forces warned they would not allow any oil tanker to load at ports seized by protesters. The Libyan Navy had blocked a Maltese-flagged vessel from trying to reach a dock and opened fire as it approached a port, officials said.
Brent rose over $1 early in the session before paring gains to seesaw near flat. The volatility followed the benchmark’s biggest weekly fall in six months after the restart of the El Sharara oilfield following a two-month blockade by protesters.
The restart of the 340,000-barrel-per-day (b/d) field will more than double Libyan crude production, which had fallen to 250,000 b/d from 1.4m b/d in July.
Brent crude futures for February rose 3 cents to $106.92 at 1812 GMT after earlier climbing over $1 to a session high of $107.96. US crude fell 54 cents to $93.42 per barrel. The contract lost $1.48 a barrel on Friday and posted its biggest weekly drop since June 2012. South Sudan’s oil production remained a concern, even after the government and rebels last week agreed to peace talks.
reuters
