NEW YORK: Global oil prices rose yesterday as investors worried about Libya after a recovery in the Opec country’s oil supply proved short-lived and government forces clashed with Islamist militias.
Libya’s El Feel oilfield was shut again by protests and the El Sharara field remained closed, bringing national oil output down to about 200,000 barrels per day (bpd) — far from the 1.4 million bpd pumped last year.
The government had pledged to bring western oilfields and pipelines back online after it reached a deal with protesters, and output had clawed back to around 300,000bpd.
In the east of the country, Libyan irregular forces clashed with Islamist militias in Benghazi, killing at least four people.
“We have to take Libyan reports that these oilfields are back up with a grain of salt because it’s still very uncertain there,” said Joseph Posillico, senior vice president of energy derivatives at Jefferies Bache in New York. “Some of that is supporting Brent.”
Brent crude rose 85 cents to $109.94 a barrel by 11.45am EDT (1545 GMT). US crude climbed 55 cents to $102.05. A dispute between Russia and Ukraine over payment for natural gas eased as Russia offered Ukraine a discount if it paid $2.2bn of the $3.5bn debt Moscow says Kiev owes for natural gas supplies.
Meanwhile, US Secretary of State John Kerry warned Russia it faced broader economic and industrial sanctions from the United States and Europe if it meddles in Ukraine’s presidential elections on May 25.
Reuters
