August Nymex WTI prices are trading in negative territory Tuesday after the Norwegian government intervened to end an energy strike that threatened to halt production by western Europe’s largest crude exporter. Following a tense night of fruitless negotiations between pension offshore workers and some of the world’s largest energy companies, the government used its emergency powers to call time on what was nearly the first shutdown in the sector for nearly 25 years. A complete shutdown would have cost the oil companies operating within the region, which include ExxonMobil, BP and Statoil, an estimated Nkr1.8bln a day. The last lockout in Norway’s offshore sector took place in 1986 and lasted for a period of three weeks before the government intervened. According to Statoil, production of oil and gas within the region should resume back to normal within the next week. WTI prices have fallen back in Asia quite sharply from opening highs of $85.84 a barrel to post an intra-day low of $84.62, with the market now edging its way back to currently trade $85.04 a barrel, down 95 cents from the NY close.
EasyForexNews Research Team