Oil trades near $70 as supply risks mount from Saudi to the UK
Futures in New York were little changed after climbing 2.1% on Monday, the biggest gain in more than a month. A strike hit production at Total’s three oil fields in the North Sea, and concerns remain over Saudi Arabia’s suspension of crude shipments through a key Sea transit route following attacks by Yemeni rebels.
Crude is poised for the biggest monthly loss in a year as simmering trade tensions between the U.S. and China pushed prices lower at a time when American shale output continues to surge. Still, falling production due to economic woes in Venezuela, a civil war in Libya and impending American sanctions on Iranian oil have raised fears over a global supply crunch. Barclays warned of “significant upside risk” for prices as sanctions begin to bite Iranian exports.
Source: World Oil