Oil futures contracts closed higher on Monday (18) in a continuation of the commodity’s recent high, which has been advancing on account of supply concerns and approaching the highest prices in three weeks.
Added to the Ukraine war, which persists and offers few signs of a quick resolution, the conflict in Libya has taken on new contours that threaten the country’s oil exports.
An extraction camp was raided over the weekend, halting production, as well as raising fears that the local civil war will affect more activities.
WTI crude for June closed up 1.17% ($1.23) at $107.61 a barrel on the New York Mercantile Exchange (Nymex), and Brent for June was up 1.30% ( US$1.46), at US$113.16 a barrel, on the Intercontinental Exchange (ICE).
Libya’s state-owned company, Nacional Oil, said on Sunday it had been forced to shut down an oil field, amid a political stalemate threatening the North African country.
According to the company, a group of people entered the al-Feel field in the south on Saturday, effectively stopping production. Tribal leaders announced on Saturday the closure of the camp and demanded the withdrawal of Mustafa Sanallah, president of the state-owned company.
They also called for what they described as a fair distribution of oil revenue among Libya’s three main regions and for Prime Minister Abdul Hamid Dbeibah to hand over power to the parliament-appointed rival Fathi Bashagha, also appointed as the country’s prime minister. .
Robbie Fraser of Schneider Electric reckons the lack of long-term supply is reducing inventories and providing a bullish basis for the market.
“Conditions have been further reinforced by near-term challenges, with a disruption in Libya’s largest oil field serving as the latest example,” he says.
“Amid massive protests, the Sharara camp has been closed at least temporarily, with government officials warning that all Libyan exports are now under threat.”
In the conflict in Ukraine, the Kremlin on Monday accused Kiev of constantly changing its stance when it comes to issues that have already been agreed upon in peace talks.
“It is often changing positions and the trend of the negotiation process leaves a lot to be desired,” he said, according to Reuters. The information is from Dow Jones Newswires.
Source: CNN Brasil
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