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Oil prices rise as Libya shuts down crude production
Oil prices soar to its highest in more than a week on Monday after Libya began halting operations on two of its major production bases through military blockades, potentially reducing national output to a fraction.
Brent crude went up by 0.5% to $65.20 after having reached to $66 a barrel – it’s highest since January 9. West Texas Intermediate went up 0.2% to $58.66 a barrel after rising earlier to its highest of $59.73 since January 10.
Two major oilfields in southwest Libya began shutting down on Sunday after military forces loyal to Khalifa Haftar closed a pipeline, the National Oil Corporation (NOC) said. The closure, following a blockade of other major eastern oil ports, had risked taking almost all the country’s oil output offline.
However, the earlier rise in oil prices alleviated after a few analysts forecasted that the supply disruptions in Libya would be short-lived. They also said that the output could be offset by other oil production facilities, further limiting the impact on global markets.
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