Oil hits five-month high on support from Libyan disruptions
Opec-led supply cuts tighten the oil market, as do US sanctions against Iran, Venezuela with Libya’s infighting triggers concern over its oil exports
London — Oil hit a five-month high above $71 a barrel on Tuesday, supported by concern that violence in Libya could further tighten supply already squeezed by oil cartel Opec supply cuts and US sanctions on Iran and Venezuela. Supply curbs led by Opec have underpinned a more than 30% rally this year for Brent crude, despite downward pressure from fears of an economic slowdown and weaker demand. Brent, the global benchmark, rose to $71.34 a barrel, the highest since November, and by 8.25am GMT was up 14c at $71.24. US crude also hit a November 2018 high of $64.77 and was later up 22c at $64.62. “Libya’s oil production and exports have not been jeopardised but the rise in tension is enough to send oil prices higher,” Tamas Varga of oil broker PVM said. Opec member Libya pumps about 1.1-million barrels per day (bpd), just more than 1% of global oil output. Supply has been volatile since the 2011 uprising against Muammar Gaddafi. “Concerns over the potential squeezing of supply in Libya...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.