Crude Oil futures traded modestly higher in the early part of Friday’s Asian even as talks between the U.S. and Russia regarding the situation in Syria advanced.
On the New York Mercantile Exchange, light, sweet crude futures for October delivery inched up 0.02% to USD18.62 per barrel in Asian trading Friday. The October contract settled up 0.97% at USD108.60 per barrel on Thursday.
U.S. Secretary of State John Kerry is due to meet with his Russian counterpart Sergei Lavrov in Geneva later to discuss terms for Syria to surrender its chemical weapons.
Oil rose on concerns talks may hit snags and hike the chances of U.S.-led limited military strikes against Syria, which energy investors fear would engulf the broader oil-rich Middle East and threaten global supply.
However, OPEC member Libya has again the Middle East oil scenario because of dwindling supply. Libya has had supply issues for more than two years due to geopolitical strife and domestic attacks on oil assets.
Now, ongoing labor strife is hindering Libyan output. In early September, Libya's output fell to just 150,000 barrels per day, though it has the capacity to produce 1.6 million barrels per day. Exports fell to 80,000 barrels per day, according to National Public Radio.
Before the Arab Spring in early 2011, Libya was producing over 1 million barrels per day. The country is home to Africa’s largest oil reserves.
The International Energy Agency added that oil supplies from the Organization of the Petroleum Exporting Countries fell by 260,000 barrels to 30.51 million barrels per day in August, due to declining output from Libya.
Elsewhere, Brent crude futures for October delivery fell 0.05% to USD111.75 per barrel on the ICE Futures Exchange. - investing.com