Brent, WTI Prices Rise

Oil prices rose on Monday as a weaker dollar and the delay of new Libyan oil exports boosted benchmarks, amid expectations of tighter crude supply going into 2017. Brent crude futures traded at $55.47 per barrel, up 26 cents from their last close. US West Texas Intermediate (WTI) crude futures were up 30 cents at $52.20 a barrel, Reuters reported.

Analysts said the increases, which built on gains of around 2% on Friday, were driven by a delay in crude oil supplies from Libya.

“It looks like the Libyan story and the weaker US dollar are counterbalancing” bearish factors, said Tamas Varga, analyst with PVM Oil Associates. “We should expect higher prices in the near-term future.” Late last week, a group guarding oil infrastructure in Libya said it had reopened a long-blockaded pipeline leading from the oilfields of Sharara and El Feel, but a separate group had prevented a production restart at El Feel.

Additionally, the US dollar fell back against a basket of other currencies since hitting 2002 highs last week. A strong dollar makes oil more expensive for holders of other currencies. Some expected the strength in oil prices to continue into early 2017 due to a deal between the Organization of Petroleum Exporting Countries and other producers to cut almost 1.8 million barrels per day in oil output from January.

“With investors now expecting a relatively high level of compliance with the production-cut agreements, prices should be well supported,” ANZ bank said on Monday.