Crude oil at fresh 30-months high

Crude oil at fresh 30-months high

NYMEX WTI crude futures for February delivery hit fresh 2017 highs on Tuesday, settling at $59.97/bbl, up $1.50, in response to reports that a pipeline moving crude oil to the Libyan Es Sider terminal had been blown up in what appeared to be an act of sabotage. It was opened in 1975 and runs 105 miles from the Forties field to Aberdeenshire and then 130 miles south to Ineos's Grangemouth refinery near Edinburgh. This happened due to the looming restart of a North Sea oil pipeline offset support from OPEC-led supply cuts. However, any rise in US crude oil production could cap the upside for crude oil (UWT) prices. Opec and non-Opec countries decided to extend the cut to the tune of 1.8 million barrels per day on November 30.

Oil rose toward $56 a barrel on Monday, supported by another shutdown at Libya's largest oilfield over the weekend and geopolitical tensions following last week's U.S. missile strike on Syria.

An Ineos spokesman said: "The repair of the pipeline at Red Moss is now mechanically complete and pressure testing is well underway".

First, if and when the Saudi Aramco sale comes to pass, the Saudis will have to deal with their own fiscal house.

The international benchmark for oil prices, Brent crude LCOc1, slipped 15 cents and crude CLc1 was down 7 cents at $58.40. Perhaps it is because they are not being produced at the rate that the EIA says that they are.

"During the first quarter of next year there will be more balance between supply and demand, which will reflect positively on improving global oil prices", he said. Texas pumped 69.2 million barrels (bbl) of oil in September, compared with an adjusted 81.3 million bbl a year ago, according to the Railroad Commission (RRC) of Texas.

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