Oil hits $68 on Libya force majeure, although pandemic surge weighs (updated)

Dachan Food Asia

20/04/2021 05:27

* Libya declares force majeure on Hariga port
    * U.S. crude inventories expected to drop by 2.9 million
barrels
    * Rising coronavirus cases in Asia limit gains
    * Coming up: API oil inventory report, 2030 GMT

 (Updates prices, adds quote, previous SINGAPORE)
    By Alex Lawler
    LONDON, April 20 (Reuters) - Oil rose to $68 a barrel and
hit its highest in a month on Tuesday, supported by a disruption
to Libyan exports and expectations of a drop in U.S. crude
inventories, although rising coronavirus cases in Asia limited
gains.
    Libya declared force majeure on exports from the port of
Hariga and said it could extend the measure to other
facilities. urn:newsml:reuters.com:*:nL1N2MC26A 
    U.S. crude stockpiles are expected to drop by 2.9 million
barrels in weekly reports.  EIA/S 
    Brent crude  LCOc1  was up 86 cents, or 1.3%, to $67.91 a
barrel by 0822 GMT after hitting $68, the highest since March
18, earlier. U.S. West Texas Intermediate (WTI) crude  CLc1 
gained 85 cents, or 1.3%, to $64.23.
    "Follow-through buying is pushing prices further up," said
Tamas Varga of oil broker PVM. "But the immediate upside
potential could be limited by the relentless march higher in
infection rates."
    Worldwide coronavirus cases have exceeded 141.7 million and
a surge in infections in India, the world's third-biggest oil
importer, has dampened optimism for a sustained demand recovery.
 urn:newsml:reuters.com:*:nL4N2AY3AS  urn:newsml:reuters.com:*:nL1N2MD06P
    Elsewhere in Asia, the Philippines has seen a second wave of
infections. Hong Kong will suspend flights from India, Pakistan
and the Philippines from April 20 for two weeks.  urn:newsml:reuters.com:*:nL4N2M92PG
 urn:newsml:reuters.com:*:nL4N2MB0VF
    Oil was underpinned by a weak U.S. dollar, which makes oil
cheaper for buyers using other currencies.  USD/ 
    "U.S. dollar weakness continues to offer support to the
commodities complex," ING Economics said in a report.
    Brent has recovered from historic lows last year, helped by
some demand recovery and huge output cuts by the Organization of
the Petroleum Exporting Countries and allies, known as OPEC+.
    In focus later will be the weekly report on U.S. supplies
from the American Petroleum Institute, due out at 2030 GMT.
OPEC+ is scheduled to meet on April 28 to consider further
tweaks to its supply pact.     

 (Additional reporting by Jessica Jaganathan; Editing by Kirsten
Donovan)
 ((alex.lawler@thomsonreuters.com; +44 207 542 4087; Reuters
Messaging: alex.lawler.reuters.com@reuters.net))