Oil prices retreat after gaining on supply concerns

Multinational

LONDON, January 21, 2020 – Oil prices retreated on Tuesday in Asia after trading higher over the weekend as production were hit in Iraq and Libya.

US Crude Oil WTI Futures lost 0.3% to $58.38 by 12:20 AM ET (04:20 GMT), while International Brent Oil Futures dropped 0.6% to $64.83.

Oil prices gained earlier in the day amid continuing supply concerns.

Security guards shut down production at the 70,000 barrel a day Al Ahdab field in Iraq at the weekend in an anti-government protest demanding permanent employment contracts, reports said.

Two major oilfileds in Libya were also shut down on Sunday after forces loyal to Russian-backed Khalifa Haftar closed a pipeline, potentially reducing national output to a fraction of its normal level, the country’s National Oil Corp (NOC) said.

In other news, Bank of America Global Research raised its 2020 oil price forecasts on Monday, citing risks related to the Middle East, an improving demand outlook and higher OPEC+ compliance to deepen output cuts.

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