A strike by offshore oil workers in Norway, western Europe's largest oil producer and exporter, could provide further support for Brent crude prices if it continues to crimp oil production, traders said Tuesday.
A strike by offshore oil workers in
Norway
,
western Europe's largest oil producer and exporter, could provide further
support for Brent crude prices if it continues to crimp oil production, traders
said Tuesday.
Brent crude has rallied $8.35, or 9.2%, to $99.32 a barrel since June 22, the
trading session before the strike started. Other factors, such as the growing
tensions between
Iran
and
the West and hopes that central banks will provide liquidity boosts to markets
have contributed to the rise. Market participants say if unions and oil
companies don't reach an agreement soon, this will add to the upward momentum
of prices.
"A recovery back up above $100 looks on the cards," said Tony
Machacek, an energy broker at Jefferies Bache Ltd. "We're not that far
away."
The strike, over pensions, is already affecting 15% of
Norway
's oil
production, or 230,000 barrels of oil a day. The strike has also affected 7% of
its natural gas output, or 11.9 million cubic meters of natural gas a day,
according to the country's Oil Industry Association.
One
North Sea
trader said delays to loading programs of Oseberg,
a grade of
North Sea
crude from
Norway
,
would be likely if strikes continue. The trader said, though, that she hadn't
seen any official delays yet.
A second trader said the strike will likely provide support to prices in the
North
Sea
physical market. He added: "I think the latest rumblings from
Iran
are
providing support too, plus healthy refining margins."
Διαβάστε ακόμα
Τρι, 24 Σεπτεμβρίου 2024 - 19:58
Τρι, 24 Σεπτεμβρίου 2024 - 19:54
Τετ, 18 Σεπτεμβρίου 2024 - 18:32
Τετ, 18 Σεπτεμβρίου 2024 - 18:27
Τρι, 17 Σεπτεμβρίου 2024 - 20:01