Oil Prices Surge Above 55 Dollars As Refinery Workers Strike

Crude oil prices rose on Monday as thousands of refinery workers go on strike, and a falling US rig count that signaled lower production down the line.

Brent crude was at around 55.00 dollars per barrel in IEU, after leaping as high as 55.62 dollars and dipping as low as $51.41, while US light crude traded at around 50.00 dollars, after reaching an intraday high of $50.56 dollars.

On Sunday, workers at nine U.S. refineries and chemical plants went on strike in an effort to pressure oil companies to agree to a new national contract.

US crude inventories hit a record high, and any dampening of refinery demand would likely push stocks higher as the slowdown in drilling has still not affected U.S. production, analysts said.

Crude analyists said, number of operational wells closed in just one week reached to around 100, which was the highest level of about 30 years, was another reason of investors demand for crude. - Istanbul