On Tuesday, the 9th of April 2019, during the midday Asia Pacific trading hours, Brent crude hit a five-month high above $71, while US crude had resurfaced over $64.50 level for the first time after November 1st, 2018. Crude market remained riant and well-supported after yesterday’s (April 8th) gain over concerns that an ongoing violence in Libya could further squeeze crude supply, which had already been contracted by substantial margin over OPEC cuts and sanctions on Iranian and Venezuelan crude.
A supply cut led by the OPEC (Organization of Petroleum Exporting Nations), a 14-nation pact of oil exporting nations headquartered in Vienna, had resulted in a rally of more than 30 percent this year for the UK crude despite steep economic slowdown.
Besides, the US crude had also experienced a five-month high to $64.51 on Tuesday (April 9th), largely led by a sanction on Venezuelan and Iranian crude amid a surging US oil inventory. While this report was being prepared, April 9th, GMT.
08.00, the Brent global benchmark was residing at $71.34 a barrel, its highest level since November and US crude had also hit a November 2018 high as beforementioned to $64.77 before settling closer to $64.50 per barrel region.
Citing that a Libya tension is fanning the flames of investors’ optimism, an oil price analyst, Tamas Varga of PVM said, “Libya’s oil production and exports have not been jeopardized but the rise in tension is enough to send oil prices higher”.