Oil Rises At Its Highest Since November 2018

Oil rises at its highest since November 2018

Oil prices hit their highest level in five months on Monday amid speculation that the escalating conflict in Libya could tighten supplies.

Libya's unrest broke out at the weekend after the Libyan government said it would launch a counter-offensive to purge forces loyal to Khalifa Haftar. Haftar's forces and the United Nations-backed unity government exchanged air strikes on Sunday, three days after Hafer launched an attack on the capital.
US Secretary of State Mike Bombo has called for an immediate end to the fighting in Libya, which has been ravaged by a civil war since the overthrow of Muammar Gaddafi in 2011.

OPEC-led supply cuts and US sanctions against Iran and Venezuela have also led to higher prices. Oil prices were also supported by continued OPEC cuts, strong US jobs data released on Friday and US sanctions on Iran and Venezuela.

The oil organization and its allies pledged

Kierl Dimitriev, one of the most senior Russian officials in support of the supply agreement with OPEC, hinted on Monday that Russia wants to increase oil production when it meets OPEC in June due to improved market conditions and a decline in inventories.

Dimitriev, head of the Russian government direct investment fund, was the first Russian official to predict an agreement with OPEC in 2016 and has since become a major advocate of the deal despite pressure from some local oil companies to abandon it.

In recent months, Dmitriyev, an envoy to Moscow in the Middle East in general and Saudi Arabia in particular, has said it is too early to end production cuts, which is in line with Saudi Arabia's top OPEC position.

But in what appears to be a change of attitude, Dimitriyev said today that production cuts may not be necessary after June. "It is very possible given the improved market situation and the decline in stocks that OPEC and its allies will decide in June this year to give up supply cuts and thus increase production," he said.

"This decision will not mean the end of the agreement but will be a confirmation of the continued coordination of efforts when it is important not only to reduce but to increase production according to market conditions."

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