LONDON: Brent crude oil firmed slightly yesterday and looked set to post the biggest monthly gain since August as prolonged unrest in Libya kept supply disruptions in focus.
More than 40 people were killed in an explosion at an army depot in southern Libya after locals tried to steal ammunition, the latest in a series of clashes highlighting the government’s inability to restore order.
But progress in settling the dispute over Iran’s nuclear programme has kept gains in check.
Brent was up 23 cents at $111.09 a barrel by 1335 GMT. US oil rose 36 cents to $92.66. There was no settlement because of the Thanksgiving holiday in the United States.
Libya’s oil exports are down to a fraction of capacity due to seizures of oil fields and ports by militias, tribesmen and civil servants demanding more political rights or higher pay.
“In Libya, ongoing turmoil in the east of the country underscores the difficulties facing the North African country in bringing barrels back to the market,” JBC Energy said.
Overall, however, supplies are adequate partly because a surge in US crude production is reducing the top oil consumer’s reliance on imports.
reuters
