LONDON: Brent crude oil held above $110 a barrel yesterday, supported by the crises in Ukraine and Libya as well as by positive economic data in the world’s top two oil consumers, the United States and China.
Investors are keeping watch on Ukraine, a main gas supply route to Europe from Russia, where presidential elections are set for Sunday.
Kiev said more than a dozen servicemen were killed on Thursday in clashes with pro-Russian separatists, fuelling security concerns ahead of the vote.
Brent was up 5 cent at $110.41 a barrel by 0910 GMT. The contract touched $111.04 the previous day, the highest since March 4. US crude gained 11 cents to $103.85.
“Geopolitical worries remain ahead of this weekend’s presidential elections in Ukraine; clashes between rebels and Ukrainian forces continue,” said Michael Poulsen of Global Risk Management.
“In Libya, there is uncertainty of the current oil output.”
Protesters in Libya shut the headquarters of the company running the Brega oil port, the only eastern port to have remained open through most of the government’s nine-month stand-off with a rebel group.
Libya’s oil output was around 230,000 barrels per day (bpd) on Wednesday, but the production level was unclear yesterday.
Positive US and Chinese manufacturing data released on Thursday also propped up prices, boosting optimism for future oil demand growth.
Manufacturing growth in the United States picked up to a three-month high in May, while China’s factory sector turned in its best performance this year in May.
Reuters
