Oil prices rise on fears of lower supply

Oil prices rose today, on Monday, amid fears of a decrease in the supply of crude oil on the world market.

In particular, oil exports from Libya fell sharply due to the political crisis in the country, which led to the suspension of the two largest export terminals.

The Norwegian Petroleum Association has warned of an imminent industrial strike that will cut national production by 130,000 barrels per day and gas by 292,000 barrels of oil equivalent per day.

In addition, a fire broke out at the Mongstad oil refinery in Equinor, Norway, over the weekend. The company said that the fire was extinguished at Norway’s only refinery, but some facilities involved in the production of certain types of petroleum products were damaged.

By 18:35 Moscow time, the price of September futures for Brent crude on the London ICE Futures exchange rose by $3.59 (3.26%) to $113.64 per barrel. And August futures contracts for West Texas Intermediate crude oil at that moment rose in price on the electronic trading of the New York Mercantile Exchange (NYMEX) by $1.85 (1.71%), to $110.28 per barrel.

“The expected strike in Norway adds to fears of a lack of supply. The market is also supported by a general rise in risk appetite,” said Giovanni Stonovo, commodities analyst at UBS Group AG.

Source: Interfax