World oil prices rose due to the disruption in Libya

World oil prices rose due to the disruption in Libya


 World oil prices rose on Monday (Tuesday morning GMT ) , after armed protesters in Libya refused to stop the closure of the main oil terminals in the eastern part of the country that has been ongoing for months .

The benchmark U.S. light sweet crude or West Texas Intermediate ( WTI ) for delivery in January rose 88 cents to close at 97.48 dollars a barrel on the New York Mercantile Exchange .

European benchmark , Brent North Sea crude for January delivery jumped 1.64 dollars to settle at 110.47 dollars a barrel in London trade .

" Great stories are about Libyan oil production is still missing in the market , " said Andy Lipow , president of Lipow Oil Associates . " It was clearly in favor of the two prices , both Brent and WTI . "

Jodhrane Ibrahim , head of the security guards who blocked oil terminals in Eastern Libya on Sunday told the broadcaster Al - Nabaa that the government has not met the requirements for the termination of the blockade .

In July , the tribe of Al - Magharba launched the blockade on oil terminals in Zueitina , Ras Lanouf and Al - Sedra . The blockade is associated with efforts to acquire oil revenues and political autonomy for Cyrenaica , Libya's eastern oil-rich country .

Last week , the group said they expected to reopen the terminals on Sunday ( 15/12 ) .

But the latest negotiations fail " only reinforces our view that Libyan oil production will be difficult to exceed 800,000 barrels per day in 2014 , " said a Morgan Stanley report .

" Resolving disputes depth will likely require a material change at the federal level , and threat by the government to use violence only aggravates the situation at risk . "

Libya in October resulted in 0.45 million barrels of oil per day , far below its capacity of 1.4 million barrels , according to the International Energy Agency ( IEA ) .

Also on Monday , the U.S. Energy Information Administration projected that U.S. oil production in 2016 will reach 9.5 million barrels per day , approaching the all-time record . Recent estimates it underscores the growing " boom " oil shale ( shale ) in the U.S. .

Lipow said the latest EIA report does not affect the price .

But the EIA estimates " to contribute to the debate increase oil production in the U.S. and whether we will be exporting crude oil in the future , " he said as quoted by AFP .