Oil rebounds on Trump health update, Norway shutdowns

Libyan oil production rises to 290,000bpd

FE Team | Published: October 05, 2020 22:41:29

LONDON, Oct 05 (Reuters): Oil prices rose on Monday, lifted by comments from doctors for US President Donald Trump suggesting he could be discharged from hospital as soon as Monday, just a few days after his positive coronavirus test sparked widespread alarm.
Brent was up $1.20, or 3.1 per cent, to $40.47 a barrel. US West Texas Intermediate (WTI) crude was $1.26, or 3.4 per cent, higher at $38.31 a barrel.
"This bout of strength is unlikely to have the legs to withstand the growing pile of unknowns. After all, the oil market is trapped in an unending cycle of uncertainty," said Stephen Brennock of oil broker PVM.
Prices slumped more than 4.0 per cent on Friday following Trump's diagnosis. However, he made a surprise appearance on Sunday in a motorcade outside the hospital where he is being treated, which helped improve market sentiment.
According to his doctors, he could be discharged from hospital later on Monday.
Oil was also supported by an escalating workers' strike in Norway. Energy major Equinor shut four of its offshore oil and gas fields on Monday as its workers expanded their strike, a company spokesman told Reuters.
Two more fields operated by Neptune Energy and Wintershall Dea also face likely shutdowns on Monday because of the strike, the Norwegian Oil and Gas Association (NOG) has said.
Meanwhile, Libyan oil production has risen by about 20,000 barrels per day (bpd) from last week to reach 290,000 bpd as exports ramp up, a Libyan oil source told Reuters on Monday on condition of anonymity.
The easing of a blockade by eastern forces has allowed the OPEC member to ramp up exports with the reopening of the Marsa El Hariga, Brega and Zueitina terminals.
Exports have yet to resume from the Ras Lanuf and Es Sider oil terminals.
The National Oil Corporation (NOC) said it would only resume operations at oilfields and terminals where militants had vacated their positions.
The blockade, which began in January, reduced Libya's output from more than 1.2 million bpd to around 100,000 bpd.