|
 Brent crude oil rose to its highest level this year as Libyan output
fell yet again, rebels in South Sudan seized control of the capital
in a key oil-producing state and protests in Venezuela showed
renewed instability.
"Geopolitics are back at the forefront and some of the longer-term
shorts that have been hanging on have gotten out ahead of the
expiration," said Dominick Chirichella, senior partner at Energy
Management Institute in New York.
A report from industry intelligence provider Genscape said stocks at
Cushing, Oklahoma, fell by 1.4 million barrels since last Tuesday,
according to traders.
The U.S. dollar traded near a six-week low against a basket of
currencies on Tuesday, which also offered support.
In New York, U.S. crude jumped $2.13, or 2.85 percent, to $102.43
per barrel, its highest since Oct. 10. There was no settlement on
Monday as U.S. markets were shut for the Presidents Day holiday.
The March futures contract expires on Thursday.
Ultra-low sulfur diesel (ULSD), commonly referred to as heating
fuel, rose 2.35 cents to settle at $3.1017 per gallon. U.S. RBOB
gasoline rose more than 3 cents to end the day at $2.8368 per
gallon.
Brent crude rose $1.28, or 1.17 percent, to settle at $110.46 per
barrel, its highest settlement since Dec. 31.
Supporting Brent was another dip in Libyan production, which fell to
just 375,000 barrels Tuesday, as protests disrupted flows from the
key oilfield, El Sharara, the state oil company said. On Sunday,
output was 390,000 bpd.
Supply concerns worsened on Tuesday following news that South Sudan
has cut oil output by a fifth to 200,000 bpd, since rebels seized
control of Malakal, the capital of the main oil-producing Upper Nile
state.
Meanwhile, tens of thousands of protesters gathered in Venezuela's
capital on Tuesday after security forces arrested an opposition
leader on charges of that he had fomented unrest against the
government.
[to top of second column] |
In a potential sign Iran's oil exports were rebounding, Western
powers and Tehran began "substantive" talks Tuesday aimed at a final
settlement on the country's contested nuclear program. Diplomats
cautioned, however, the deal may prove impossible.
Looking ahead to U.S. weekly petroleum stocks reports, analysts
predicted distillate stocks, which include heating oil and diesel
fuel, fell 1.8 million barrels on average in the week to Feb. 14 on
continued cold weather, according to a Reuters poll.
Gasoline inventories were also seen as down by 900,000 barrels,
while U.S. crude oil stocks were forecast to rise 1.8 million
barrels on average, the poll found.
The American Petroleum Institute's weekly petroleum stocks report
will be delayed by one day to Wednesday at 4:30 p.m. EST (2130 GMT).
The Energy Information Administration's report of crude oil,
distillate and gasoline stocks will be released on Thursday at 11
a.m. EST.
(Additional reporting by Alex Lawler
in London, Florence Tan in Singapore; editing by Mark Heinrich and
Bernadette Baum)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
