Oil rebounds as fighting halts Libya's Ras Lanuf export return

[HONG KONG] Oil rebounded from the lowest close in more than a month after clashes halted what would be the first crude shipment from Libya's Ras Lanuf export terminal since 2014.

Futures rose as much as 1.2 per cent in New York after losing 2 per cent Friday. The tanker Seadelta suspended loading after fighting started Sunday between local Petroleum Facilities Guard units and forces loyal to eastern-based military commander Khalifa Haftar. Opec may call an extraordinary meeting if ministers reach consensus at an informal gathering next week, Secretary General Mohammed Barkindo said, according to Algerian Press Service.

Oil has fluctuated since rallying in August on speculation the Organization of Petroleum Exporting Countries and Russia will agree on measures to stabilize the market at the meeting Sept 27 in Algiers. Prices tumbled 6.2 per cent last week amid concern the resumption of shipments from Libya, as well as Nigeria, would worsen a global glut.

West Texas Intermediate for October delivery, which expires Tuesday, gained as much as 52 US cents to US$43.55 a barrel on the New York Mercantile Exchange and was at US$43.49 at 6:36am in Hong Kong.

The contract fell 88 US cents to settle at US$43.03 a barrel on Friday, the lowest close since Aug 10.

The more-active November contract was 44 US cents higher at US$44.06 a barrel.

Brent for November settlement added as much as 50 US cents, or 1.1 per cent, to US$46.27 a barrel on the London-based ICE Futures Europe exchange. Prices declined 82 US cents, or 1.8 per cent, to US$45.77 a barrel on Friday.

The global benchmark traded at a US$2.17 premium to WTI for November delivery.

BLOOMBERG