London: Brent crude rose by $1 (Dh3.67) to above $84 a barrel on Monday, climbing for a second straight session as protests in Libya disrupted supply and the US dollar fell away from four-year highs.
Exports at the Hariga oil port in eastern Libya were halted on Saturday when state security guards began a sit-in protest over unpaid wages.
The Al Feel oilfield in the south-west, also known as the Elephant field, was shut down on Sunday due to a power outage, while the Al Sharara field, which was halted last week due to political violence, remains closed.
“These developments highlight the ongoing chaos in Libya, and we should see a production level of 600,000 to 700,000 barrels a day as the new normal,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
Brent crude for December was up $1 at $84.39 per barrel by 0925 GMT. US crude was up 70 cents to $79.35 per barrel.
The dollar fell 0.3 per cent against a basket of currencies on Monday, supporting oil prices. The dollar’s recent strength has made oil and other commodities more expensive for holders of other currencies, suppressing demand.
Ukrainian forces shelled the pro-Moscow stronghold of Donetsk on Sunday, putting a fragile ceasefire under pressure.
An escalation of tensions in Ukraine could disrupt Europe’s gas supplies from Russia, potentially increasing demand for oil.
But weak economic data from China provided resistance to oil prices. Consumer inflation in the world’s second-largest economy remained at a near five-year low in October amid sluggish demand, the National Bureau of Statistics said on Monday.
The Organisation of the Petroleum Exporting Countries (Opec) has given no clear indication that it will cut its output at a meeting on November 27. It has previously reduced output at times of oversupply.
Kuwait’s oil minister Ali Al Omair said on Monday that Opec was unlikely to cut. “It’s too early to decide, but I don’t think so,” he told reporters on the sidelines of a conference in Abu Dhabi.
