Usually the Nordic country barely figures on the list of risks to crude supplies. But striking workers and a threatened production shutdown have contributed to Brent’s march back towards $100 a barrel. It’s a reminder of oil’s ability to surprise, even when demand is weak.
The price of Brent crude was up 0.8 percent in European afternoon trading on July 9. The crude oil benchmark changed hands for $98.93 per barrel as failed labour talks in Norway raised the prospect of a shut-down of the country’s North Sea oil and gas production.
Oil production in Norway, western Europe’s biggest petroleum producer, has already fallen by 13 percent since oil and gas workers first went on strike over pay and pensions on June 24.
The Brent price hit $102 per barrel last week, up from a two-year low of $89 per barrel on June 21 after Norway’s oil industry said it would lock out offshore workers starting July 10.
The move was widely seen as a bid to get Norway’s government to step in and end the strike. But a government spokesman said on July 8 said there were no immediate plans to intervene.
If Norway’s industry shut down completely it could affect about 2 million barrels of oil equivalent per day of supplies - equal to just over 2 percent of last year’s daily global crude production.