LONDON: Brent crude oil was steady below $83 a barrel on Thursday as apparent momentum towards a deal between Iran and world powers over its nuclear programme and higher U.S. inventories offset supply shocks in the Middle East.
U.S. Secretary of State John Kerry said on Wednesday that a deal between Iran and six world powers would be harder to achieve after a Nov. 24 deadline, suggesting a degree of urgency ahead of planned talks in Oman next week.
"If sanctions on Iran are eased, one needs to review once again the supply and demand balance," said Olivier Jakob of Petromatrix, a Swiss energy consultancy.
Jakob said a breakthrough could increase Iran's exports by up to 500,000 barrels a day in 2015, depending on the nature of any deal.
Samuel Ciszuk, senior advisor on supply security at the Swedish Energy Agency, told the Reuters Global Oil Forum on Wednesday that he saw the odds of a deal or compromise being reached as 50-50.
Brent crude for December was flat at $82.95 a barrel by 1115 GMT, after trading between $82.35 and $83.24. U.S. crude slipped 20 cents to $78.48.
U.S. crude inventories rose 460,000 barrels in the week to Oct. 31, Energy Information Administration data showed on Wednesday, albeit lower than analysts' expectations of an increase of 2.2 million barrels.
"U.S. domestic production is at its highest level ever, and imports are at their lowest for more than a decade. That's a bearish outlook in the short term," said Tamas Varga, analyst at PVM Oil in London.
Libya's production fell by at least 200,000 barrels a day on Wednesday as gunmen overran the El Sharara oilfield, sources said, providing some support to oil prices.
Libya hopes to reopen the field "very soon" but first needs to resolve a conflict between local tribes, an oil official said on Thursday.
Yemeni tribesmen blew up the country's main oil export pipeline on Thursday, stopping crude flows of about 70,000 barrels a day, energy industry and tribal sources said, the latest in a series of pipeline attacks.
Prices spiked sharply on Wednesday as rumours of a pipeline explosion in Saudi Arabia circulated, but fell back as it emerged the incident was a fire at a diesel pipeline which was quickly brought under control.
A fire was also quickly extinguished at a pumping unit at Rosneft's Saratov oil refinery in Russia's Volga river region, the Emergencies Ministry said on Thursday.
Comments
Comments are closed for this article.