(MENAFN - Arab News) World oil prices advanced yesterday, rebounding from recent losses ahead of a looming lockout of Norwegian production.
US and Brent crude oil futures extended gains by more than 1.
NYMEX crude for August delivery hit a session high of 85.60 a barrel, up 1.15. In London, August Brent crude climbed to a session high of 99.39 for a gain of 1.20.
"A factor providing particular upside support for oil prices is the failed negotiations between the Norwegian oil industry association and employees of the industry," analysts at Vienna-based consultancy JBC Energy was quoted as saying by AFP.
Norway confirmed that oil and gas production would be halted from today as a result of an industry lockout, after talks between employers and unions failed to end a prolonged strike.
"The consequence of the lockout is a controlled close-down of all Norwegian petroleum production and exports" when stocks are exhausted, said Petroleum and Energy Ministry spokesman Haakon Smith-Isaksen said .
The lockout in western Europe's top producer was announced by Statoil on Friday in response to the strike launched on June 24 by more than 700 North Sea oil workers over pensions.
The unions yesterday reiterated their commitment to their pension fight in a strike that employers group OLF says has cost the industry tens of millions of euros a day.
The lockout will affect all production on Norway's continental shelf, where about 50 companies operate, including Statoil, BP and Royal Dutch Shell.