Brent Rises on Continued Libya Outage

Brent Rises on Continued Libya Outage

USA oil price went up on Friday after dropping almost 2 percent in the previous session.

Oil was mixed on Friday as a Canadian supply outage supported USA crude prices, while an increase in production from OPEC's biggest exporter Saudi Arabia pushed Brent lower.

US energy companies last week increased the number of rigs drilling for oil by five to 863, up 100 year-on-year, General Electric Co's (GE.N) Baker Hughes energy services firm said in its closely followed report late on Friday.

Oil prices gained on Monday following the data last week that showed United States crude inventories slumped to their lowest in as long as three years. Brent, the global benchmark, rose 1.3% to $78.13.

Oil prices fell early on Friday along with stock markets. For the week, WTI futures lost about 0.5% after hitting a 3-year high on Tuesday, while Brent lost about 3%.

Oil markets opened cautiously lower on Friday ahead of a raft of import tariffs set to be imposed later in the day by the world's two biggest economies, the United States and China.

American crude shipments to China are around 400,000 barrels per day (bpd), worth $1 billion a month at current prices.

Beijing has threatened a 25 percent tariff on USA crude imports, although it has not specified a date.

US markets also garnered support from a government employment report showing better-than-expected growth in jobs.

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A Chinese import tariff would make USA oil uncompetitive in China, forcing its refiners to seek alternative supplies in a tight market.

That came after an outage at a major Canadian oil sands facility cut regional supply.

The cancellations mean South Korea will import no Iranian oil in August, the first month of zero imports since August 2012 when South Korean buyers put Iranian oil purchases on hold before getting a waiver to import limited amounts of Iran crude, Reuters added.

It shows the year-on-year percentage growth in USA non-farm payrolls, splitting the results by oil and non-oil producing states.

The tightness at Cushing and the potential increase in Gulf exports "both have implications for how quickly the prompt overhang in the market can clear, and thus provide some direction for prices", Chauhan said.

The major story remains the looming supply shortages due to US sanctions against Iran.

"The embassy of the Republic of Korea denies any claims that it would not lift any Iranian crude and condensate in July", the South Korean embassy responded to the report.

Venezuela is expected to lose another 400,000 bpd by year-end with production going to below 1 million bpd.

Saudi Arabia told Opec that it increased production by nearly 500,000 barrels per day last month.

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