Oil prices are on a decent run to the upside, which has been observed for going on the last week and a half.
The black gold had fallen victim this year to some harsh selling, due to the Coronavirus fears that hit the markets. There were many concerns about falling demand, in addition to there being too much supply.
A rebound has however been staged, with Brent rising a seventh straight day, amid broad optimism as new coronavirus cases fell for the second day in China. Separately, there were fresh concerns on falling supply after the U.S. sanctioned a division of a large Russian oil company, Rosneft, in a move that will cut more Venezuelan crude from the market.
Elsewhere, oil supply concerns have been reignited around Libya, which first started back on 18 January, due to a blockade of its ports and oilfields. These had been conducted by the government Fayez al-Sarraj, his rival, Khalifa Haftar, groups that are loyal to him, given a long-running feud.
Furthermore, Libya's National Oil Corporation (NOC) said in a statement on 18 February that fuel vessels were urgently evacuated from the Tripoli port and all offloading operations were cancelled after missiles struck close to a highly explosive liquefied petroleum gas (LPG) tanker discharging in the port. There is much in the way of oil disruption; 125K BPD, dropped down from 1 million BPD.
All as detailed is helping prop up oil across the board, in addition to helping the Canadian Dollar within FX markets. The strong correlation between the Canadian/U.S. dollar exchange rate and oil prices is due, in large part, to the amount of the nation’s total foreign exchange earnings that are garnered through crude oil sales
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