Subscribe to our free daily newsletters
  Oil and Gas News from OilGasDaily.Com  

Subscribe to our free daily newsletters

Early rally in oil fizzles on Libyan rebound
by Daniel J. Graeber
New York (UPI) Feb 2, 2017

disclaimer: image is for illustration purposes only

Geopolitical tensions in the Persian Gulf offered support to crude oil prices early Thursday, though renewed work in Libya could undermine the rally.

The White House unnerved markets further in a spate of diplomatic outbursts. The Washington Post reported President Donald Trump ended a call early with Australia's prime minister amid disputes over tightened U.S. immigration policy. Trump's stance has already angered many conventional European allies and the administration added to increased tensions by putting Iran "on notice" for its recent missile tests.

Saber-rattling against Iran is a particular market concern because as much as 20 percent of the world's oil moves through the narrow Strait of Hormuz in the Persian Gulf.

The price for Brent crude oil was up about 0.3 percent about a half hour before the start of U.S. trading to $56.99 per barrel. The U.S. benchmark for crude oil prices, West Texas Intermediate, was up 0.2 percent to $53.98 per barrel.

Today's rally could be short-lived as competing market factors play against geopolitical tensions that may not evolve beyond rhetoric. Already, a market report from S&P Global Platts found crude oil prices may be fast approaching a ceiling as the rise in U.S. crude oil production balances against an agreement from members of the Organization of Petroleum Exporting Countries to trim output.

Iran is the only member of OPEC allowed to produce more oil. Libya, meanwhile, is exempt from the deal and Austrian energy company OMV said the improved political and security situation there meant it was able to start production at two of the country's larger oil fields.

"OMV has been a trustful partner to Libya's National Oil Corp. throughout challenging times and remains fully committed to invest in Libya in the future," OMV Chairman and CEO Rainer Seele said in a statement.

Elsewhere, U.S. payroll numbers could drag on broader market momentum even after private payroll processor ADP reported strong gains earlier this week.

For the week ending Jan. 28, the U.S. Labor Department reported first-time claims for unemployment fell from the previous week's revised level. The less-volatile four-week average, however, was revised up by 2,250 and the previous week's long-range average increased by 250.

Comment on this article using your Disqus, Facebook, Google or Twitter login.

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only


Related Links
All About Oil and Gas News at

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Previous Report
Kuwaitis seek roots in upmarket tents under the stars
Al-Julaia, Kuwait (AFP) Jan 31, 2017
Nostalgic for their Bedouin roots, Kuwaitis like Ahmad al-Shimmari are following in the footsteps of their desert-dwelling ancestors living in tents under the stars - but with a touch of modern luxury. The former oil sector employee and 15 other men, all relatives and friends, are sharing one of six tents in a camp set up by his extended family for the entire winter close to the border with ... read more

DuPont Industrial Biosciences to develop new high-efficiency biogas enzyme method

Cathay Pacific to cut emissions with switch to biofuel

Populus dataset holds promise for biofuels, materials, metabolites

Handheld Sensor Unit Determines Biofuel Content Of Diesel Blends

Eltek to provide solar energy for hospitals in Zimbabwe under UNDP programme

Saudi Arabia takes low-carbon energy approach

NRDC: States should lead low-carbon economy

Storing solar power increases energy consumption and emissions

Prysmian UK to supply land cable connections for East Anglia ONE offshore wind farm

Russia's nuclear giant pushes into wind energy

The power of wind energy and how to use it

Largest US offshore wind farm gets green light

Toshiba to stop building new nuclear plants: report

International partnerships vital for UK nuclear energy

Canada uranium supplier, Fukushima operator in contract fight

Russia 'ready' to entirely fund Hungary nuclear plant

The ancient Indus civilization's adaptation to climate change

Florida corals tell of cold spells and dust bowls past, foretell weather to come

Study reveals that climate change could dramatically alter fragile mountain habitats

Climate change to shift global pattern of mild weather

Chinese, Mexican automakers team up to make SUVs

Daimler to supply self-driving cars for Uber

Dieselgate drags on for VW and Bosch with new payouts

German prosecutors say probing former VW CEO for fraud

Iraq family turned back by US says cleared for entry

Iraq calls on US to review 'wrong' travel ban

Iraq PM says US ban punishes those 'fighting terrorism'

Jihadist rule in Mosul sparked backlash against religion

Trump White House puts Iran 'on notice'

Iran warns US against creating tensions over missiles

US raises alarm at UN over Iran missile test

Iran warns US to not create tensions; Russia says missile tests allowed

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement