– Oil prices stable in the morning on Monday, after rising for the fifth consecutive week – the longest increase in more than a year, from October 2016.
Saudi Arabia stepped up security measures on objects of the oil infrastructure. US data indicate that increased activity in the oil and gas industry.
The price of January futures for Brent crude on the London ICE Futures exchange to 8:25 Moscow time rose by 2 cents (0.03 percent) to $63,54 per barrel.
The WTI crude for December delivery in electronic trading on the new York Mercantile exchange (NYMEX) rose by 6 cents (0.11 percent) to $56,80 per barrel.
Following the session, 10 November quotation of the futures on Brent fell by $0.41 (0.6 percent), to $63, and 52 per barrel, WTI – at $0.43 and (0,8%), to $56,74 per barrel. During the week the price of Brent increased by 2.3%, WTI – 2%.
“Geopolitical events in the middle East follow each other, but at the moment of tension is enough to support the concern in the market. Probably, this factor stops the collapse in oil prices, as production in the U.S. is growing,” said commodities analyst at Fat Prophets Lennox.
Saudi Arabia has taken additional measures to protect oil fields and pipelines, according to TV channel Al-Alrabiya. The plan was made public after Bahrain accused Iran in the explosion and fire on the oil pipeline between Bahrain and Saudi Arabia, and Iran denied the allegations, writes Bloomberg.
The Minister for foreign Affairs of Bahrain Khalid al-Khalifa, on Twitter called the undermining of the pipeline “a dangerous escalation by Iran, which is designed to intimidate citizens and undermine the global oil industry.” The Iranian foreign Ministry said in response that “Bahrainis need to realize that the era of lies and the children’s accusations came to an end.”
According to estimates by Baker Hughes, the number of U.S. drilling rigs increased last week by nine units compared to the previous week, to 738. In annual terms, the growth amounted to 286 units.