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March 3, 2015

Oil holds above $60 on Saudi crude price increase

Brent held above $60 a barrel today due to an increase in Saudi crude prices and air strikes on oil facilities in Libya.

By admin-demo

Brent held above $60 a barrel today due to an increase in Saudi crude prices and air strikes on oil facilities in Libya.

Reuters reported that the April Brent contract was down 49 cents at $60.53 and US crude futures increased 23 cents to $50.75 a barrel

Saudi Arabia has increased official selling prices (OSPs) for its oil deliveries to Asia and the US.

Mitsubishi risk manager Tony Nunan was quoted by the news agency as saying: "This is a sign that prices have bottomed out, because it means Saudi is confident in raising prices without being afraid of losing market share."

"This is a sign that prices have bottomed out, because it means Saudi is confident in raising prices without being afraid of losing market share."

The price of Brent crude increased from a six year low to hold above $60 a barrel in the last seven weeks, without being affected by continued worries on worldwide ample supply.

Meanwhile, air strikes on oil facilities and an airport in Libya on Tuesday helped to underpin prices. Reuters said negotiations between major powers and Iran on its nuclear programme restricted oil price gains.

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Any indication of a lasting agreement between Tehran and the six world powers may result in the return of Iranian crude to the market.

Investors are also waiting for weekly US Government inventories data, which is due to be revealed later today, for additional price support.

Data from the American Petroleum Institute has revealed that US crude stocks increased 2.9 million barrels last week.

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