Oil prices climbed today extending gains from the previous session, as the market shifted focus to supply disruptions, while demand concerns eased following a drop in new coronavirus cases at the epicenter of the outbreak.
Conflict in Libya that has led to a blockade of its ports and oilfields shows no signs of a resolution, while U.S. sanctions on a subsidiary of Russian state oil major Rosneft could cut more Venezuelan crude from the market, rekindling global oil supply worries.
Brent crude futures LCOc1 were up 14 cents, or 0.2%, to $59.26 a barrel by 07:45 GMT, after climbing to as high as $59.71 earlier in the day.
The international benchmark rose 2.4% on Wednesday and is currently up for an eighth straight day.
West Texas Intermediate (WTI) crude futures CLc1 climbed 38 cents, or 0.7%, to $53.67 per barrel. WTI has risen in six out of seven sessions going back to February 11.
“The supply disruptions are helping to alleviate the virus impact, but it is probably premature to think the worst of the economic impact is by and large over,” said Stephen Innes, chief market strategist at AxiCorp.
In a statement published today, United Nations Support Mission in Libya hoped to resume the second round of talks of the Libyan Joint Military Commission (5+5).
UNSMIL also expressed its strong and renewed condemnation of the bombing of Tripoli’s seaport, which resulted in a “number of casualties and could have led to a real disaster had the vessel transporting liquefied gas been hit.”
The Mission called for an end to the escalation and provocative actions, especially expansion of the conflict area, and urges all parties to resort to dialogue as the only means to end the crisis.
Gold prices held steady above the key $1,600 mark today as an uptick in equities due to a drop in new virus cases was offset by fears of an economic fallout from the epidemic.
Spot gold was little changed at $1,603.20 per ounce by 07:02 GMT, having surged to its highest since January 8 at $1,605.26 earlier.
However, U.S. gold futures rose 0.2% to $1,606.50.
Yesterday, UNSMIL head Ghassan Salame stressed that the arms embargo on Libya was subject to repeated violations, explaining that its full implementation requires international cooperation.
At a press conference in Munich, Salame talked about numerous violations committed in Tripoli, the most recent was the shelling of Tripoli port.
“So, while the situation on the ground remains a situation where the truce is very fragile, is often violated, where new attacks took place, even today, in the very [sea] port of Tripoli, where incidents take place left and right; while this situation remains on the ground, nobody has so far reneged on the principles of accepting the truce and the political process is trying to find a way to go forward,” he said.
Salame stated that there are two main factors giving him hope at this stage.
“There are reasons to be hopeful here, first because the Libyans do want an end to this tragedy they have painted themselves into, but also that the Berlin Conference has produced a follow-up machinery that will push for the implementation of this resolution that basically translates into legal terms the conclusions of the Berlin conference.” Salame said.
As the terror of Coronavirus (COVID-19) continues to spread across different parts of the world, China has released new data according to which elderly and sick people are most vulnerable to getting infected by the deadly virus.
Health officials in China published data after analysing more 70, 000 cases of the new strains of coronavirus. Data from the Chinese Centre for Disease Control and Prevention (CCDC) revealed that more than 80 per cent of people affected with coronavirus were either mildly sick or elderly. Medical staff are also more prone to getting infected from the virus.
The details were published in the Chinese Journal of Epidemiology, which deeply studies all 72,314 cases of COVID-19 diagnosed across China as till February 11.
The media adviser of the Health Ministry, Amin Al-Hashemi, confirmed in a statement to “Tabadul” that yesterday’s rocket attack on Tripoli sea port caused the death of 3 dock workers, and the injury of 5 others along with massive material damages.
It should be noted that this attack came a day after Libyans flocked by thousands to streets all across Tripoli, especially the Martyrs Square, and all others to celebrate the 9th Anniversary of February 17 Revolution.
Yesterday, National Oil Corporation of Libya confirmed that fuel vessels have evacuated urgently from Tripoli port and all offloading operations were cancelled after projectiles struck meters away from a highly explosive liquified petroleum gas (LPG) tanker discharging in the port.
NOC Chairman Mustafa Sanalla said: “the attack on Tripoli port could have led to a humanitarian and environmental disaster and it will have a significant impact on a crowded region like Tripoli. The city does not have operational fuel storage facilities as the capital’s main storage warehouse was evacuated as a result of the fighting on Airport Road area, where the warehouse is located. The consequences will be immediate; hospitals, schools, power stations and other vital services will be disrupted. We condemn this behaviour in the strongest possible terms and ask the international community to intervene rapidly to prevent a serious escalation in the conflict and to allow NOC to manage fuel supplies.”
Following the attack, the LPG tanker and a gasoline tanker that were in Tripoli immediately left the port for safe waters.
NOC also mentioned that it is exploring alternative ways to supply Tripoli and its surroundings with fuel.
