Oil rises to $60 per barrel, Libya fire supports
LONDON
(Reuters) - Brent crude oil rose to $60 per barrel on Monday, supported
by concerns about disruption to output from Libya, but a global supply
glut kept prices nearly 50 percent off their peak for the year.
Reuters
24 mins ago
Oil rises to $60 per barrel, Libya fire supports
By Simon Falush
31 minutes ago
A motorist holds a fuel pump at a Gulf petrol station in London in this April 18, 2006 file photo. REUTERS/Luke …
By Simon Falush
Libya is producing a scant 128,000 barrels of oil a day from fields connected to the far eastern port of Hariga, an oil official said, as fighting kept its largest ports, Es Sider and Ras Lanuf, shut.
Output from the OPEC member nation has struggled with port blockades and protests, slashing output from the 1.6 million barrels a day it produced prior to the 2011 ousting of leader Muammar Gaddafi.
A fire sparked by a rocket attack last week on oil storage tanks at the port of Es Sider marked an escalation in damage to the country's oil infrastructure.
"There's
tension in Libya, but liquidity is very thin so not much is needed to
move oil prices," said Hans van Cleef, senior energy economist at ABN
Amro in Amsterdam.
Trade was sparse, with many investors away for the holidays.Van Cleef added that the overall picture remained bearish, with traders looking for reasons to sell.
"It's very supply driven. On the demand side, the only impact is when you see a negative change in data."
Brent
crude was up 84 cents at $60.29 by 7.47 a.m. after
hitting $60.40. The benchmark shed 79 cents in the previous session.
Brent
is down around 46 percent since a year high above $115 per barrel hit
in June. It has been weighed down by a decision taken by OPEC in
November not to cut supply to address the slump in prices and comments
since from Saudi Arabia expressing comfort with lower prices.Oil is on track for its biggest fall since 2008 and the second-biggest annual fall since futures started trading in the 1980s.
U.S. crude
Oil prices also drew support from plans by China and Japan aimed at supporting their economies, which would help lift demand.
The
People's Bank of China plans to loosen loan-to-deposit ratios for banks
from next year. China's economy is expected to grow by 7 percent in
2015, slower than the forecast 7.3 percent in 2014, government
think-tank State Information Centre said.
Japan's
government on Saturday approved stimulus spending worth $29 billion to
help the country's lagging regions and households with subsidies,
merchandise vouchers and other steps, which it hopes will boost GDP by
0.7 percent.
(Additional reporting by Keith Wallis in Singapore; editing by Susan Thomas and Jason Neely)
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