Oil prices rise amid output uncertainty and despite OPEC hike agreement

The oil price is higher amid output concerns from Canada and Libya.

Oil prices rise amid output uncertainty and despite OPEC hike agreement

Oil prices are higher Tuesday, as output uncertainty helps halt the slide experienced in the valuable commodity Monday. Problems at a Canadian oil facility and conflict over who can export Libyan oil, could both work to limit supply from the two oil producing countries.

By around 1400 BST, the price of Brent Crude oil was 0.97% higher at $75.27 per barrel. The price of US WTI crude oil, meanwhile was 0.26% higher at $68.26 per barrel.

Canadian production, Libyan political problems

Traders were unnerved by the month-long power outage at Syncrude Canada, which is set to disrupt output from the oil producing country.

The Canadian oil sands facility can produce up to 360,000 barrels per day of oil and the outage of at least one month will have a notable impact on output from the country. And, it’s possible that this outage could significantly shrink US stockpiles at its Cushings storage hub.

Separately, the ongoing conflict in Libya has now seen control of Libya’s oil ports handed over to the country’s official state-owned company, NOC. This has raised concerns over how much oil will be sold and be able to leave the country.

Indeed, analysts suggest there’s a chance that oil exports from the country could drop to zero.

India in talks over oil bid

In other oil-related news, India is reported to be in talks with UAE companies to make a joint bid for oil blocks in the middle eastern country during the upcoming oil blocks auction.

“We are in talks that India could bid in the next licensing round of UAE with some Middle Eastern nation companies like Mubadala,” India’s oil minister Dharmendra Pradhan said, according to a Reuters article.

This move could prove significant as India is the world’s third largest importer of oil as it buys 80% of its requirements into the country.

As of 14:21 BST, Tuesday, 26 June, Oil share price is $49.59.

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