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Crude hovers at 7-month highs amid supply disruptions

Published 2016-05-20, 06:59 a/m
© Reuters.  Crude oil prices remain at 7-month peak but gains capped
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Investing.com - U.S. oil futures were hovering at seven-month highs on Friday, as supply disruptions in Nigeria and Libya lent support to the commodity, although the strong U.S. dollar limited gains.

U.S. crude futures for June delivery were up 0.12% at $48.73 a barrel, near the previous session’s seven-month high of 49.04.

On the ICE Futures Exchange in London, the July Brent contract edged up 0.08% to $48.85 a barrel, close to Wednesday’s six-month high of 49.85.

Oil prices strengthed after intruders blocked access on Thursday to Exxon Mobil (NYSE:XOM)'s terminal exporting Qua Iboe in Nigeria, the country's largest crude stream.

Libyan crude output also remained under pressure amid internal conflict.

Elsewhere, Canadian oil production was also said to have been cut as wildfires forced closures of around 1 million barrels in daily production.

But gains in oil prices were expected to remain limited as demand for the U.S. dollar remained strong after the Federal Reserve’s April meeting minutes on Wednesday showed that officials said a June rate hike would be appropriate if economic data indicated that growth was picking up in the second quarter and employment and inflation were firming.

In addition, New York Federal Reserve President William Dudley said on Thursday that the U.S. economy could be strong enough to warrant a rate hike in June or July.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 95.31, just off Thursday’s seven-week peak of 95.51.

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