WTI for February delivery climbed as much as 60 cents to $92.93 a barrel in electronic trading on the New York Mercantile Exchange. Thus, extending its premium to WTI to the highest in more than a month after the Buzzard oil field in the North Sea was halted; Brent gained as much as 1 percent in London.
Thus, Brent has reached a four-day high. This happened as reports are coming that two people with knowledge of the outage said earlier that production at the 200,000 barrel-a-day field stopped. This led to uncertainties in supply. Another reason behind an increase in the oil prices is that the dollar weakened from a five-week high against the euro.
On the other hand, a better indication is coming from western Libya wherein the port of Zawiya will export crude next week from the Sharara field. This according to market observers is what resumed operations on Jan. 4; however, now that it will be open, traders can expect for smooth oil supplies from the oilfields.
The Sharara field in Libya is expected to help the global supply of crude and could have an impact on Brent, which for February settlement increased as much as $1.01 to $108.16 a barrel on the London-based ICE Futures Europe exchange. On the other hand, WTI for February delivery climbed as much as 60 cents to $92.93 a barrel in electronic trading on the NYME.
Market observer with keen eyes on the crude market believe that the contract fell $1.34 to $92.33 yesterday which in fact is the lowest close since Nov. 27 of 2013. According to the traders who have been heavily involved in trading, the volume of all futures traded was about 13 percent below the 100-day average. Additionally, there has been a fall in prices by 5.6 percent in one year.
US oil prices hold near 6-week low Amidst Concern
ForexMinute reported earlier that crude was in bad shape the whole year in 2013.
Whereas New York-traded oil futures held in a tight range between USD92.48 a barrel and USD92.84 a barrel, the February contract slumped to USD92.26 a barrel on Wednesday. Additionally, Nymex oil futures were likely to find support at USD91.79 a barrel which according to market observers is low and trading below the resistance level of USD94.18 a barrel.
To contact the reporter of this story: Jonathan Millet at email@example.com