Oil Up For Third Session on Supply Problems in Libya, Iraq



Reuters

NEW YORK, Aug 13 (Reuters) - Oil prices on both sides of the Atlantic rose for the third session in a row on Tuesday amid worries over supplies from OPEC nations Libya and Iraq.

Brent crude moved back toward a four-month high near $110 a barrel following last week's sell-off, while U.S. crude hit the highest level in six sessions to above $107.

Labor unrest in Libya has forced oil output to its lowest since the 2011 civil war, with the country's total oil production well below 500,000 barrels per day (bpd) from 1.3 million bpd in June.

This sparked fear of a possible supply shortfall in the northern hemisphere and boosted prices, analysts said.

Libya's state National Oil Corporation said in a statement to shippers that it could not provide September loading schedules, normally due by now, as on-again, off-again strikes paralyse its ports.

The disruptions can be "manageable" if Saudi Arabia maintains high production, said Sarah Emerson, managing director of Energy Security Analysis Inc in Wakefield, Massachusetts.

"The question is how long does it last. Today it's manageable."


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