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Despite Iraq and Libya oil conflicts, Brent goes above $60
09 Mar 2015
Brent crude oil steadied above $60 a barrel as a stronger dollar balanced worries over the impact of fighting in Libya and Iraq on Middle East and North African oil production.
The dollar hit an 11-and-a-half-year high against a basket of currencies on Friday after strong US jobs data boosted expectations of a sooner-than-expected interest rate rise in the world’s largest economy.
US employment accelerated in February and the jobless rate fell to 5.5 percent, signs that could encourage the Federal Reserve to raise interest rates in June.
Brent was down 5 cents a barrel at $60.43 by 1450 GMT. US light crude was down 40 cents at $50.36.
Bruce Mccain, Chief Investment Strategist at Key Private Bank In Cleveland, Ohio, said, “The (US) economy, with respect to jobs, is doing a pretty good job of growing.” Supplies remained a major worry for the international oil markets.
Fighting has escalated in northeast Iraq, where Islamic State militants have set fire to oilfields to deter Shiite militiamen and Iraqi soldiers from advancing. In Libya, worsening security has led to the closure of 11 oilfields.
“Supply disruptions have certainly come back into focus for now,” Virendra Chauhan, oil analyst at consultancy Energy Aspects.
“Libya is noteworthy because militant attacks on infrastructure are increasing.”
Tamas Varga, analyst at London brokerage PVM Oil Associates, agreed: “The Libyan and Iraqi oil field skirmishes are worrying ... There are serious supply issues there.”
Investors watched for more details of nuclear talks between Iran and major world powers. Western diplomats say there are some signs of progress in discussions with Tehran over its nascent nuclear industry. Any sign of a deal between Iran and world powers could result in a flood of Iranian crude returning to the market.
Iran’s foreign minister has suggested a 10-year moratorium on some aspects of the nuclear program might be acceptable, although he declined to discuss the issue in detail.
National Iranian Oil Co’s head of international affairs, Mohsen Ghamsari, stated that Tehran would increase crude exports if sanctions were lifted.
Oil services company Baker Hughes was due to release a weekly survey of the number of US rigs drilling for crude, an indicator used by some investors to gauge whether shale producers are cutting output after prices slumped.
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09 Mar 2015
Brent crude oil steadied above $60 a barrel as a stronger dollar balanced worries over the impact of fighting in Libya and Iraq on Middle East and North African oil production.
The dollar hit an 11-and-a-half-year high against a basket of currencies on Friday after strong US jobs data boosted expectations of a sooner-than-expected interest rate rise in the world’s largest economy.
US employment accelerated in February and the jobless rate fell to 5.5 percent, signs that could encourage the Federal Reserve to raise interest rates in June.
Brent was down 5 cents a barrel at $60.43 by 1450 GMT. US light crude was down 40 cents at $50.36.
Bruce Mccain, Chief Investment Strategist at Key Private Bank In Cleveland, Ohio, said, “The (US) economy, with respect to jobs, is doing a pretty good job of growing.” Supplies remained a major worry for the international oil markets.
Fighting has escalated in northeast Iraq, where Islamic State militants have set fire to oilfields to deter Shiite militiamen and Iraqi soldiers from advancing. In Libya, worsening security has led to the closure of 11 oilfields.
“Supply disruptions have certainly come back into focus for now,” Virendra Chauhan, oil analyst at consultancy Energy Aspects.
“Libya is noteworthy because militant attacks on infrastructure are increasing.”
Tamas Varga, analyst at London brokerage PVM Oil Associates, agreed: “The Libyan and Iraqi oil field skirmishes are worrying ... There are serious supply issues there.”
Investors watched for more details of nuclear talks between Iran and major world powers. Western diplomats say there are some signs of progress in discussions with Tehran over its nascent nuclear industry. Any sign of a deal between Iran and world powers could result in a flood of Iranian crude returning to the market.
Iran’s foreign minister has suggested a 10-year moratorium on some aspects of the nuclear program might be acceptable, although he declined to discuss the issue in detail.
National Iranian Oil Co’s head of international affairs, Mohsen Ghamsari, stated that Tehran would increase crude exports if sanctions were lifted.
Oil services company Baker Hughes was due to release a weekly survey of the number of US rigs drilling for crude, an indicator used by some investors to gauge whether shale producers are cutting output after prices slumped.
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