Oil prices climbed on Tuesday, partially reversing an almost 3% loss from the Monday session, invigorated by strong China data, much as anxieties surrounding supply restart in Norway, Libya as well as the Gulf of Mexico hurt gains.
Bonny Light, Nigeria’s chief crude grade, retreated by $1.41 or 3.37% to $40.47 at the Monday session. Qua Iboe, another key national grade, dipped 45 cents or 1.09% to $41.25 at 06:19 WAT on Tuesday.
The world’s biggest oil importer, China, brought in 11.8 million barrels of oil per day (bpd) in September, 5.5% bigger than the 11.18 million bpd for August and 17.5% higher than the 10.04 million bpd reported last September, customs data revealed on Tuesday.
Oil prices were strained by concerns regarding the supply resumption just as re-emerging coronavirus infections in the U.S. Midwest and Europe overshadowed the prospect of demand recovery, creating a difficulty for the Organisation of the Petroleum Exporting Countries and its allies led by Russia, collectively known as OPEC+.
Workers are resuming at the Gulf of Mexico platforms after Hurricane Delta waned and Norwegian workers returning to offshore rigs following the suspension of a strike, while Libya removed a force majeure at its Sharara oilfield on Sunday.
Production at the North African nation stood at 355,000 bpd on Monday. At full capacity operation, the 300,000 bpd Sharara field will increase that figure by nearly 100 per cent.
“That would effectively add 0.3% of global oil supply in a very short time frame,” Commonwealth Bank commodities analyst Vivek Dhar said in a note,” said Vivek Dhar of Commonwealth Bank.
OPEC+ has reined in output in an effort to bolster oil prices in the face of the coronavirus crisis, with a reduction of 7.7 million bpd to hold through December.
The cartel’s market panel is to meet on Monday.
“It won’t be a huge surprise if finally the alliance decides to address the worsening situation and amend its action,” Bjornar Tonhaugen, Rystad Energy’s head of oil markets, said in a note.
Lockdown curbs were being perfected in the United Kingdom and the Czech Republic to confront surging COVID-19 infections and Jean Castex, French prime minister, said he could not rule out local lockdowns, further heightening worries of fuel demand.
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