Oil prices have increased due to a potential supply shortage in part due to sanctions, production losses, and impending strikes.

Brent crude oil prices jumped 55 cents, or 0.7%, to reach $78.62 a barrel, continuing its upward growth after rising 1.2% on the previous day, while US light crude futures rose 47 cents, or 0.7%, to trade at $74.32, Reuters reported.

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Around 670 workers on Norwegian oil and gas offshore rigs are set to go on strike on 10 July 2018 after rejecting a proposed wage deal.

Attempts failed to broker a truce and reach a deal between trade unions, Safe and YS, and the Shipowners’ Association that represents the rig employers, the news agency reported.

The strike is expected to affect the production at Shell’s Knarr field, which produces 23,900 barrels per day.

“It is likely that concern will support prices all through the summer, while demand continues to be strong during the summer peak.”

It will potentially add to disruptions in oil production caused by tensions in the Middle East as the US intends to stop oil exports from Iran by November.

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Last month, the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia reached an agreement to raise output to address supply concerns resulting from production losses in countries including Libya, Canada, and Venezuela.

Analysts are concerned that increased Saudi Arabia production to counter the losses from Iran will use up global spare capacity, leaving markets more vulnerable to further production declines.

IHS markets energy vice-president Victor Shum was quoted as saying: “The bottom line becomes the available spare capacity within OPEC…and the markets have started to focus on that.

“It is likely that concern will support prices all through the summer, while demand continues to be strong during the summer peak.”

Recent oil port closures resulted in Libya’s national oil production declining to 527,000 barrels per day from 1.28 million bpd in February.