Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Oil steady above $47, latest Libya hitch supports

Published 07/19/2016, 08:43 AM
Updated 07/19/2016, 08:43 AM
© Reuters. The Elevation Resources drilling rig is shown at the Permian Basin drilling site in Andrews County Texas

By Dmitry Zhdannikov

LONDON (Reuters) - Oil prices steadied above $47 a barrel on Tuesday helped by a new Libyan supply disruption but concerns over a global glut of crude and refined fuel capped gains.

A protest over wages that shut the eastern Libyan oil terminal of Hariga forced the operator of the Sarir field to suspend production of 100,000 barrels per day.

Libyan news and a rebound in stocks on the back of better than expected results by Wall Street Bank Goldman Sachs (N:GS) helped push oil prices slightly up but analysts said the market fundamentals still looked bearish.

"We are about to enter a period where the crude oil markets could start to feel more fully the pressure resulting from the come-back of Iran," said Olivier Jakob at Petromatrix consultancy. "Saudi Arabia is moving out of its peak seasonal demand for crude oil right when global refining margins are under strong pressure, and that is not a good combination."

The market also awaited U.S. crude stocks data on Tuesday and Wednesday to help give direction to prices.

Brent crude (LCOc1) was up 26 cents to $47.22 a barrel as of 1225 GMT, after falling 65 cents, or 1.4 percent, on Monday.

U.S. crude, known as West Texas Intermediate (WTI), (CLc1) rose 18 cents to $45.42 a barrel after settling 71 cents, or about 1.6 percent, lower in the previous session.

Fuel inventories in the United States, Europe and Asia are brimming despite this being the peak summer driving season, leading traders to store diesel on tankers at sea as growth in demand eases. With landed oil product storage nearly full as well, there is little support for any sustained recovery in crude prices even as output tapers.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

U.S. shale oil production is expected to fall in August for a 10th straight month, by 99,000 barrels per day (bpd) to 4.55 million bpd, according to a U.S. drilling productivity report on Monday.

Further weighing on supply, U.S. commercial crude oil inventories probably fell by 2.2 million barrels last week, a Reuters poll showed on Monday.

That would be the ninth consecutive week stocks have fallen.

The poll was taken ahead of weekly oil stocks reports due on Tuesday from the American Petroleum Institute (API) and on Wednesday from the U.S. Department of Energy's Energy Information Administration (EIA).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.