Oil prices up after Libya’s biggest field shuts down

Published April 11th, 2017 - 10:30 GMT
Libya's Sharara oilfield, which had only just returned to production, was shut on Sunday after a group blocked a pipeline linking it to an oil terminal. (AFP/File)
Libya's Sharara oilfield, which had only just returned to production, was shut on Sunday after a group blocked a pipeline linking it to an oil terminal. (AFP/File)

Brent crude oil price rose towards $56 a barrel on April 10, supported by the tension over Syria following the US missile strike and another shutdown at Libya's largest oilfield.

Read more: Oil Prices Jump After Trump Launches Military Strike On Syria

Brent crude rose 68 cents to $55.92, not far from the one-month high of $56.08 reached on Friday. US crude was up 63 cents at $52.87.

Libya's Sharara oilfield was shut on Sunday after a group blocked a pipeline linking it to an oil terminal, a Libyan oil source said. The field had only just returned to production, after a week-long stoppage ending in early April, a Reuters report said.

Oil started rallying last week after the US fired missiles at a Syrian government air base.

Read more: Iraq: Oil Exports Expected To Increase Amid Infrastructure Overhaul 

Meanwhile, RBC Capital Markets Head of Commodity Strategy and CNBC Contributor Helima Croft predicted prices will climb to the low $60s within months — a nearly 20 percent move from current levels.

"We see it grinding higher over the back half of the year," Croft said. "We're coming out of refinery maintenance season. So, we're going to start to see draws of the US inventory. Those high US inventory numbers have really been depressing prices."

Summer driving season will also give prices a "boost," and demand won't fall anytime soon, according to Croft.

 


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