Abuja - Oil prices edged up in early trading on Monday as output falls in Nigeria and worries about political instability in Venezuela tightened the market, although rising OPEC output and a stronger dollar capped gains, CNBC reported.
Analysts said that falling supplies from producers such as Nigeria, the Americas and China had pushed up prices, although they added that increases elsewhere were capping gains.
In Nigeria, oil major Exxon Mobil suspended exports from the country's biggest crude stream, Qua Iboe, and other producers like Royal Dutch Shell and Chevron have also suffered disruptions following acts of sabotage, cutting output to its lowest in decades of around 1.65 million barrels per day (bpd).
According to Emirates24/7, Oil prices near $50 on disruptions, International Brent crude futures were trading at $48.46 per barrel at 8.13am UAE time, up 63 cents, or 1.3 per cent, from their last settlement.
“The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected,” Goldman Sachs said, adding that the market “likely shifted into deficit in May driven by both sustained strong demand as well as sharply declining production.”
- News24 Nigeria