Oil Extends Advance Near $52 as Libyan Output Comeback Stalls

Futures climbed as much as 1.2 percent in New York after rising 2 percent on Friday. Libyan oil-facility guards backtracked on an agreement to allow supply to flow from the El Feel and Sharara fields, two of the country’s biggest, according to an engineer that operates El Feel. Money managers increased their net-long positions in West Texas Intermediate crude to the highest since July 2014, U.S. Commodity Futures Trading Commission data showed.

The “oil price is heading higher — period — as a result of OPEC/non-OPEC’s decision to cut,” Bjarne Schieldrop, chief commodities analyst at SEB AB, said by e-mail. “The effect from these decisions are not yet behind us,” while Libya’s production problems are also supporting the price, he said.

WTI for January delivery, which expires Tuesday, rose as much as 62 cents to $52.52 a barrel on the New York Mercantile Exchange and was at $51.93 as of 7:38 a.m. local time. The contract advanced $1 to $51.90 on Friday. Total volume traded Monday was about 13 percent below the 100-day average. The more-active February future gained 14 cents to $53.09.

Brent for February settlement climbed as much as 59 cents, or 1.1 percent, to $55.80 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $2.28 to WTI for the same month.
more at: https://www.bloomberg.com/news/articles/2016-12-18/oil-extends-advance-above-52-as-libyan-output-comeback-stalls

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