OPEC+ is sticking to a policy of oil production, avoiding the production debate in September. Some Norwegian oil workers will go on strike from 5 July. Supply worries to support oil price rise, surpassing recession risk – poll
Brent oil chart at 5 minute intervals
Oil prices rose 2% on Friday, offsetting much of the previous session’s decline as supply disruptions in Libya and strike expectations in Norway outweighed expectations that the economic downturn could affect demand.
Brent futures rose $2.07, or 1.9%, to $111.10 a barrel by 0911 GMT, after falling to $108.03 a barrel earlier in the session.
Futures for WTI crude rose $1.80, or 1.7%, to $107.56 a barrel, after falling to $104.56 a barrel earlier.
Both contracts fell about 3% on Thursday, ending the month lower for the first time since November.
We „continue to view price risks as skewed to the upside due to limited inventories, limited spare capacity and a muted response from non-OPEC+ countries,” Barclays said in a note.
The National Oil Corporation of Libya announced on Thursday a force majeure event in the ports of Es Sider and Ras Lanuf, as well as in the El Fel oil field. According to the NOC, force majeure is still in effect in the ports of Brega and Zueitin.
Production has declined sharply, with daily exports hovering between 365,000 and 409,000 bpd, down 865,000 bpd from „normal” production, the NOC said.
Elsewhere, 74 Norwegian offshore oil workers at the Equinor (EQNR.OL) Gudrun, Oseberg South and Oseberg East platforms will go on strike from July 5, the Lederne union said Thursday, likely halting about 4% of Norway’s oil production.
Ecuador’s government and leaders of indigenous groups on Thursday reached an agreement to end more than two weeks of protests that have brought more than half of the country’s pre-crisis 500,000 bpd oil production to a halt.
On Thursday, a group of OPEC+ producers, including Russia, agreed to stick to their production strategy after two days of meetings. However, as for September, the club did not discuss politics.
Earlier, OPEC+ decided to increase production by 648,000 barrels per day (bpd) monthly in July and August, compared to the previous plan to increase production by 432,000 bpd per month.
US President Joe Biden will make a three-day trip to the Middle East in mid-July that includes a visit to Saudi Arabia, drawing attention to energy policy as the United States and other countries face soaring fuel prices, fueling inflation.
Biden said Thursday he would not directly pressure Saudi Arabia to increase oil production to curb rising prices when he meets the Saudi king and crown prince during a visit this month.