Oil remains near $92 on Iran agreement and Libya outlook

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The price of oil remained near US$92 a barrel Tuesday on expectations that global supplies will rise with ramped up output in Libya and the North Sea, along with increased exports from Iran if a deal on its nuclear program succeeds.

Benchmark U.S. oil for February delivery was up 21 cents at $92.01 a barrel at 12 a.m. ET on Tuesday in electronic trading on the New York Mercantile Exchange. The contract fell 92 cents to close at $91.80 on Monday.

Brent crude, used to set prices for international varieties of crude used by many U.S. refineries, was up 1 cent at $105.98.

An agreement Sunday between Iran and six world powers may enable Iran’s oil industry, whose exports were severely limited by economic sanctions over its nuclear program, to sell more crude after the deal takes effect Jan. 20.

The planned six-month interim agreement will limit Tehran’s uranium enrichment and allow international inspectors access to its nuclear facilities.

News of the agreement coincided with reports of a rebound in production by Libya. Meanwhile, North Sea oil output is due to increase with the restart of the Buzzard oilfield.

In other energy futures trading in New York:

— Wholesale gasoline was down 0.4 cent at $2.631 a gallon.

— Natural gas rose 3.4 cents to $4.308 per 1,000 cubic feet.

— Heating oil fell 0.1 cent to $2.934 a gallon.

(TSX:ECA, TSX:IMO, TSX:SU, TSX:HSE, NYSE:BP, NYSE:COP, NYSE:XOM, NYSE:CVX, TSX:CNQ, TSX:TLM, TSX:COS.UN, TSX:CVE)

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