© Reuters. FILE PHOTO: A Marathon Oil well site is seen, as oil and gas activity dips in the Eagle Ford Shale oil field due to the coronavirus disease (COVID-19) pandemic and the drop in demand for oil globally, in Texas, U.S., May 18, 2020. Picture taken May 18, 20

By Natalie Grover

LONDON (Reuters) – Global benchmark hovered above $81 a barrel on Friday, with bullish sentiment over U.S. demand bolstered by supply disruption in Libya and Nigeria.

On Thursday some oilfields in Libya were shut down because of a local tribe’s protest against the kidnapping of a former minister. Separately, Shell (LON:) suspended loadings of Nigeria’s Forcados owing to a potential leak at a terminal.

The Libya disruption is halting an estimated 370,000 barrels per day (bpd) while the loss from the Nigerian outage is pegged at 225,000 bpd, said PVM analyst John Evans.

With the “market in thrall of a ‘tightening’ narrative”, any more outages will push the oil price to levels that not even the most ardent bull would have predicted for the second half of the year, Evans added.

Russian oil exports have also decreased significantly and, if this trend were to continue next week, this would probably drive the price up further, particularly since Russian oil exports are set to be reduced by 500,000 bpd in August, added Commerzbank (ETR:) analysts.

Both Brent and WTI futures were down slightly at 1207 GMT, with Brent 9 cents lower at $81.27 a barrel and WTI down 11 cents at $76.78.

Further price support came from Thursday’s reports by the International Energy Agency (IEA) and Organization of the Petroleum Exporting Countries (OPEC) predicting that oil demand will pick up in the second half of the year, particularly in China, despite broader macroeconomic headwinds.

National Australia Bank (OTC:) said in a research note on Friday that it expected the OPEC forecast, if realised, “to deliver oil prices well above $100 a barrel”, adding that the softening value of the U.S. dollar continued to boost commodity prices.

Cooling U.S. inflation has also given markets hope that the U.S. Federal Reserve could be close to ending its fastest monetary policy tightening campaign since the 1980s.

“The light at the end of the tightening tunnel is getting brighter and investors are increasingly confident of emerging after one more hike in two weeks,” said Craig Erlam, senior market analyst at OANDA.

Saudi Arabia and Russia, the world’s biggest oil exporters, this month agreed to deepen oil cuts in place since November last year, providing further support to crude prices.