Oil Rises For Second Day As Investors Watch Syria



Reuters

NEW YORK, Sept 12 (Reuters) - Global oil prices rose for a second straight day on Thursday as investors monitored diplomatic efforts to eliminate Syria's chemical weapons and Libya declared force majeure on another three ports.

The two-day rally follows two days of heavy losses that wiped $5 off the global Brent benchmark.

Libya's state National Oil Corp declared force majeure, a legal term to cover the suspension of contractual obligations, on three more ports that had not been exporting crude oil for more than two weeks, an NOC document showed on Thursday.

Political unrest had already seen Libya's oil output plunge to a 10th of usual production and exports fall to about 80,000 barrels per day earlier this month, pushing up oil prices.

"The market had sold off on the assurances we got from Libyan officialdom [that exports could come back], but that is clearly not happening," said John Kilduff, a partner at Again Capital LLC in New York.

Syria applied on Thursday to sign up to the global ban on chemical weapons, a major first step in a Russian-backed plan that would see it abandon its chemical weapons arsenal to avert U.S. military strikes.

The RIA news agency quoted President Bashar al-Assad as saying in a television interview that Syria's fulfillment of this initiative was contingent on the U.S. ceasing its threats.


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