Oil prices rise 3% due to production shutdowns in Libya, following the escalation of conflict in the Middle East.
Libya’s oil production was around 1.18 million barrels per day in July, according to the Organization of the Petroleum Exporting Countries (OPEC), citing secondary sources.
Oil prices surged by approximately 3% on Monday as investors focused on supply concerns following reports of escalating conflict in the Middle East and production shutdowns in Libya.
Brent crude futures rose by $2.41, or 3.05%, to $81.43 per barrel, while U.S. crude futures increased by $2.59, or 3.46%, to $77.42 per barrel. Both benchmarks had gained over 2% on Friday.
Short-term buying appears justified, driven by Middle East tensions, production disruptions in Libya, and low oil inventories in Cushing, Oklahoma, the main U.S. storage hub.
An anticipated missile attack by the Iran-backed Hezbollah movement seemed to have been largely thwarted by preemptive Israeli strikes in southern Lebanon.
However, no agreement was reached during ceasefire talks in Cairo on Sunday, as neither Hamas nor Israel accepted several proposals presented by mediators, according to two Egyptian security sources. This casts doubt on the success of the latest U.S.-backed effort to end the 10-month-long war.
A tanker has been ablaze in the Red Sea since August 23 following an attack by Yemen’s Houthi rebels, with no clear signs of a spill, according to the EU’s Red Sea naval mission, Aspides, in a post on X.
On Monday, the government in Benghazi, eastern Libya, announced the closure of all oil fields, halting production and exports. The National Oil Corp, which controls the country’s oil resources, has not yet confirmed this.
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