(Bloomberg) -- Crude prices touched the highest level in three weeks amid reports of an oil pipeline explosion in Libya.
Futures edged higher for a fifth session in New York amid news of an explosion at an oil pipeline that feeds the Es Sider terminal in Libya. In the U.S., shale drillers kept the rig count unchanged last week, even as oil prices remain above $55 a barrel since mid-November.
The news of the Libyan explosion “is a big thing,” according to Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York. Prices could move higher with Brent already in backwardation and amid a tighter supply picture, he said by telephone.
Oil is poised for a fourth straight monthly advance as the Organization of Petroleum Exporting Countries and its partners including Russia cut output and promise to continue doing so through the end of next year. In the U.S., the uptick in boosting the rig count has slowed. Oil rigs are holding at 747 with no rigs added last week, according to Baker Hughes data Friday.
West Texas Intermediate for February delivery advanced 11 cents to $58.58 a barrel at 8:53 a.m. on the New York Mercantile Exchange after earlier rising to as high as $58.65. Total volume traded was about 69 percent below the 100-day average.
Brent for February settlement climbed 9 cents to $65.34 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $6.77 to WTI.
Oil Prices in 2018: Again It’s All About U.S. Shale Output
As the year comes to a close, focus will also be on the restart of the Forties Pipeline System in the North Sea. Repairs of the pipeline at Red Moss are now mechanically complete and a small number of customers are now sending oil and gas through the pipeline at low rates, the company said Monday. The pipeline should be back to normal rates early in the new year.
Oil-market news:
- Russia is keeping this year’s oil production at its 2016 level of about 10.98 million barrels a day as it complies with the OPEC deal to reduce output, Energy Minister Alexander Novak said on Rossiya 24 TV.
- India’s biggest oil explorer plans to snatch up producing assets to reach its goal of raising overseas output by more than half in about three years, a faster route than drilling for new reserves.
