Oil prices are on the rise after falling at the early session this Monday, a financial resource informs.
At the London Stock Exchange, Brent crude futures for March delivery were up $1.96, while oil prices grew to $54.95 a barrel. At the same time, WTI futures for March delivery inched up by $1.33 to $49.57 during NYMEX electronic deals. Earlier, a drop in Brent Crude and WTI during a session exceeded 3%.
(A morning decline of the oil market was triggered by fears about the biggest strike at U.S. refineries since 1980. It was anticipated that it would cause a cut in oil refining and would worsen the situation with oil oversupply on the global market.
However, the oil market reversed based on expectations that US refineries would raise prices of fuel extracted during the strike.
The largest industrial trade union that represents workers of more than 200 U.S. refineries, oil deposits, pipe lines, and chemical plants failed to agree with oil companies about terms of (a) new labor contract. Therefore, nine companies suspended their operation on Sunday.
Total output at these nine plants amounts to 1.82 million barrels a day which accounts for 10% of the U.S. total refining capacity.
