Oil edged further above 64 dollars a barrel on Monday, supported by doubts about how quickly Saudi Arabia can restore output after the attack at Aramco oil company.
Despite efforts by the top crude exporter to reassure the market it can resume full production by the end of September, state oil company Saudi Aramco has asked some customers to switch crude grades and delay shipments.
“The geopolitical risk premium has returned with a vengeance and supply-side developments have been thrust back into the spotlight,”
“While Saudi oil facilities smoulder, the potential for fresh outages in Nigeria, Libya and Venezuela continues to hang over the market,” Stephen Brennock of oil broker PVM said.
Brent crude was up 31 cents at 64.59 dollars a barrel at 0911 GMT, having risen as high as 65.50 dollars. U.S. West Texas Intermediate crude CLc1 rose 28 cents to 58.37 dollars.
A survey on Monday showed euro zone business growth stalled this month, and the latest U.S.-China talks have failed to produce signs of a breakthrough in the two countries’ prolonged trade dispute.
“Investors remain unconvinced that a trade deal is about to see the light of day soon,”
“That’s likely to put a cap on any further gains in risk assets,” said Hussein Sayed, analyst at broker FXTM.