Crude oil edged higher after settling 3.4% lower the previous session, as traders weighed hopes for constructive talks at this week's UN General Assembly against ongoing Middle East supply risks. Washington has warned it will shut down Iranian airlines and sanction firms tied to them, while output at Libya's Sharara oilfield has fallen to around 127,000 bbl/d, down from roughly 340,000 bbl/d, after a pipeline blockade.
Iran pressure adds to the risk premium
Crude oil prices recovered this morning, clawing back part of yesterday's 3.4% decline, as markets balanced hopes for constructive discussions at this week's UN General Assembly against ongoing Middle East supply risks. The US has warned it will shut down Iranian airlines from Wednesday and is imposing additional sanctions on foreign firms doing business with Iranian carriers.
Libya's Sharara field output falls sharply
Supply-side risks remain elevated elsewhere. Libya's Sharara oilfield has seen output fall to around 127,000 bbl/d, down from roughly 340,000 bbl/d, after an armed group blocked the pipeline linking the field to the Zawiya export terminal.
Russia weighs extending its diesel export ban
Russia may extend its ban on most diesel exports as refinery runs remain constrained by repeated Ukrainian attacks on energy infrastructure, Bloomberg reported. Continued restrictions on Russian diesel exports have tightened refined product availability and supported gasoil and gasoline cracks in Western markets. Efforts by the US and EU to discourage attacks on energy infrastructure have yet to yield a breakthrough.
Source: Commodities Analysis & Opinion
Trading involves risk.
Risk Disclaimer
