The rising U.S. economy and Libya's turmoil drive oil prices higher
Brokers report that oil prices on the New York fuel exchange continue to rise following positive data from the American economy and more profound disruptions in oil supplies from Libya.
Oil prices in the USA continue to rise after positive data from the American economy
On NYMEX in New York, a barrel of West Texas Intermediate crude for October costs CAD $102.65, up 0.33%.
Brent on ICE for October delivery is priced at CAD $108.10 per barrel, up 0.33%.
The U.S. economy remains strong
Commodity prices are rising due to positive data from the U.S. economy. In the second quarter, Gross Domestic Product increased by 3% on an annualized basis (SAAR) quarter-over-quarter in the second estimate, while 2.8% was expected.
Meanwhile, last week, the number of new jobless claims in the USA was 231,000 compared to the consensus of 232,000.
This data suggests that the American economy remains strong, which can positively impact commodity demand.
Key "battleground"
Meanwhile, the disruptions in Libyan oil supplies are not ending. This week, oil production fell by more than half to less than 450,000 barrels per day.
Oil fields in Libya are limiting operations due to a stalemate in a dispute concerning the central bank. The dispute is between eastern Libya authorities and western Libya's internationally recognized government.
Libya has suspended oil exports from five ports in the country's east. The terminals have a combined capacity of around 800,000 barrels per day.
Libya's energy resources are an essential "battleground" for factions vying for political dominance, causing frequent disruptions in the operation of oil fields.
