Mubasher: Crude prices rose on Tuesday, with Brent recovering from a three-month low, after a growing number of oil workers went on strike in Norway, supporting a market that has seen an oversupply in recent days.

International benchmark Brent crude futures climbed $0.36 to $72.20 per barrel (pb) early on the day, from their last close, as US Nymex futures inched up $0.3 to $68.09 pb from their previous session, after falling the day earlier by 4.2%.

Oil worker strike, which started on Thursday, 12 July, in Norway escalated, after hundreds more walked out in a debate over pay and pensions, as employers failed to respond to union demands for a new offer.

Despite the limited impact of the strike on Norwegian oil output, some drillers warned of possible contract terminations, if the dispute extended for more than a month.

Moreover, Libyan oil production is prone to further falls, despite the reopening of four export terminals after eastern factions handed over the ports, Australia and New Zealand Bank (ANZ) said in a morning note.

The southwestern oilfield of El Feel was also reopened after a prolonged shutdown, but 300,000 barrels per day (bpd) were cut from Sharara, two days later.

Output from Sharara oilfield was also expected to decline by at least 160,000 bpd, after the abduction of two workers by an unknown group, the National Oil Corporation said on Saturday.

However, oil output from major seven shale formations in the US is set to rise by 143,000 bpd to a record 7.47 million bpd in August, the country’s Energy Information Administration (EIA) stated in a monthly report on Monday.

By 7:00 am GMT, Brent crude futures declined 0.42% to $71.54 pb, as US Nymex futures fell 0.38% to $67.80 pb.