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The oil rises; tensions in the Middle East threaten production

The oil rises; tensions in the Middle East threaten production


Oil prices rise on Monday as rising tensions in the Middle East raises concerns about production and exports.

US WTI crude oil futures skyrocket 1.1% to $ 59.26 per barrel at 6:16 a.m. (CET) while Brent futures of international reference point up 1.3 % up to 65.69 dollars.

On Sunday, Iraq halted the production of an oil field due to the intensification of the riots. Meanwhile, in Libya, National Oil Corp. declared a force majeure state after Commander Khalifa Haftar blocked exports in the ports under his control.

Last week, the International Energy Agency said the supply from Iraq is “potentially vulnerable” due to the country’s increased political risks. Tensions in the Middle East increased since the beginning of the year following the US air strike that ended the life of Iranian General Qassem Soleimani.

On the other hand, OPEC Secretary General Mohammed Barkindo said in an interview with the CNBC that global oil demand has “rising potential.”

“In general, what we see from our point of view is an upward growth potential from the side of the demand equation, which will affect the total balance for the rest of the year,” he said.

Oil prices fall on Friday before the weekly oilfield count published by Baker Hughes, which has indicated that drillers have increased by 14 platforms to a total of 673 US oil fields.

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