WTI Crude Oil and Brent rose 0.65% on European’s Monday morning session testing the $62 and $65 levels respectively after the announcement that the biggest Libya’s oil field Sharara stopped the production due to pipeline halt, removing from the oil market almost 300.000 barrels per day.
WTI Crude Oil settled at $61.25 , +0.4% up on last Friday, after touching the intra day lows of $60.20, easing the fear on the oil markets on the US tariffs on Steel and Aluminum. WTI Crude Oil closed with -3.5% weekly losses while Brent Oil with -4% losses mainly by the increase on the US Oil Inventories and dollar strength.
Libya’s Pipeline Halt: Biggest Libya’s Oil Field Sharara with daily output of 300.000 barrels has stopped pumping crude oil since Sunday after the closing of a pipeline from Sharara oil field to the Zawiya refinery, without knowing any details on the exact cause of the pipeline’s closure or on the likely duration of the production halt.
- OPEC and Shale Oil meeting: OPEC Secretary General Mohammad Barkindo with a team of other OPEC Oil ministers , with the biggest Shale Oil firms and some oil investors are set to gather in Houston as CERAWeek, the largest energy industry conference, begins on Monday, discussing the Shale Oil revolution and how to reduce the global oil glut.
- Steel and Aluminum tariffs would raise costs for oil and gas projects: Trump’s administration announced the plans to add a 25% and 10% tax fee on overseas Steels and Aluminum imports respectively. The tariffs could have a significant impact on the U.S. Oil and Natural Gas industry which is relies mainly from Canadian Steel for the construction of the oil projects such as oil pipelines, energy export terminals and petrochemical plants.
- Active Rig Data: The US Baker Hughes Rig data which is an early indicator of future oil and gas output, showed on Friday that the US drillers added another 1 oil drilling rig for the week ended March 2, increased for a sixth week in a row. This small increase helped the total active rig count to reach the 800, which is much higher than a year ago’s record low of 609 active rigs, clearly illustrating the Shale Oil industry expansion.
WTI Crude Oil price is testing again the strong resistance level of $62 this Monday morning. It seems to trade between an triangle (at 4hr chart )and the prices could move up towards $63 or down $61 with any major factor.