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Oil prices are in weekly rise supported by Norway supply cut

by Bunkerist
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Increased oil prices, sourced by the risk of up to 25% cut in supply from Norway due to the oil workers’ strike, eased on the last day of this week,

Brent was down by 8 cents at $43.26 a barrel by 0740 GMT, having gained more than 3% on Thursday. West Texas Intermediate (WTI) crude dropped 5 cents at $41.14 after also gaining more than 3% on Thursday.

Both contracts are on track for gains of about 10% this week, the first increase in three weeks, as prices rise in response to the strike action by Norwegian oil workers. Norwegian oil company and labor officials said they will meet with a state-appointed mediator Friday, hoping both sides will end the strike.

Market watchers are preparing for the impact on oil production of Hurricane Delta, which is predicted to hit the US Gulf Coast within hours. Approximately 1.5 million barrels of daily production has been stopped so far.

The impacts of non-OPEC production are being beneficial in rebalancing the oil market.

The Organization of Petroleum Exporting Countries (OPEC) states that the worst situation for the oil market is over after the price and demand decline this year due to the coronavirus outbreak.

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