The oil price is rising again Tuesday, on slower output fears and amid expectations that US oil inventories fell again, last week.
By 1120 BST, the price of Brent crude oil was 0.48% higher at $63.21 per barrel. The price of US WTI crude oil, meanwhile, was up 0.54% at $57.52 per barrel.
Nigerian oil workers take strike action
Oil workers in Nigeria took strike action Monday, due to claims of unfair treatment of oil union workers. However, the strike was called off the same day as talks between the Nigerian Government and Pengassan – the Nigerian oil and gas workers union – got back on track.
While there are no signs at the moment that the momentary strike action has disrupted the oil supply, in the past it has done so, hence the fears of a fall in oil output from Nigeria.
Pengassan said it suspended the strike actin after a number of reassurances were secured from oil field operator Neconde:
- Neconde agreed to recall sacked staff and allow them to be union members.
- That a review in three months would be conducted to ensure adherence to the agreements.
- A resolution will be sought to the general “anti-union posture” of other oil industry companies.
US oil stocks seen lower
While Nigerian strike action was short-lived, other details continue to push the oil price higher.
The weekly Energy Information Administration US oil stocks data are due Wednesday and Bloomberg is anticipating a sixth straight drop in inventories of US WTI crude oil.
The stockpile of WTI crude held in Oklahoma, are forecast to have fallen by 2.2 million barrels, the news agency said.
Elsewhere, the Forties pipeline in the North Sea remains shut, as repair work to a leaking hairline crack in the pipe is ongoing. Forties pipeline operator Ineos, issued an updated statement Tuesday.
“Repairs are progressing well and a number of options are currently being developed,” Ineos said. “The custom parts necessary for some of these options have now been fabricated and are being delivered to the site over the coming days as we progress the preferred method of repair from today.”
The pipeline is expected to remain shut for two-to-four weeks from the December 11 shutdown date.