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Brent leads crude prices higher as Norway oil workers prepare to strike

Reuters  |  TOKYO 

(Reuters) - prices rose on Tuesday on escalating concerns about potential supply shortages, with leading the way as hundreds of workers in are set to strike later in the day after failed wage talks.

had added 25 cents, or 0.3 percent, to $78.32 per barrel by 0056 GMT, following a 1.2-percent climb on Monday.

U.S. light futures were up by 17 cents, or 0.2 percent, at $74.02. They gained 5 cents to settle at $73.85 a barrel the session before.

Hundreds of workers on Norwegian and gas offshore rigs are due to on strike on Tuesday after rejecting a proposed wage deal, a move which will likely affect the production of at least one field, Shell's Knarr.

That potentially adds to disruptions in other oil producing regions amid tensions in the

The says it wants to reduce from Iran, the world's fifth-biggest producer, to zero by November, which would oblige other to pump more.

Saudi Arabia, fellow members of the Organization of the Petroleum Exporting Countries (OPEC) and allies including agreed last month to increase output to dampen price gains and offset global production losses in countries including

The market has grown concerned that if the Saudis offset the losses from Iran, that will use up global spare capacity and leave markets more vulnerable to further or unexpected production declines.

Libya's national fell to 527,000 barrels per day from a high of 1.28 million bpd in February following recent oil port closures, the of the said in a statement on Monday.

In Canada, an outage at the 360,000-barrel per day (bpd) has reduced flows into Cushing, Oklahoma, the delivery point for U.S. futures.

Money managers raised their bullish bets on U.S. crude in the week to July 3, the said on Monday.

(Reporting by Aaron Sheldrick; Editing by Joseph Radford)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 06:36 IST