Libya has lost around 90000 bpd from pipeline blast: oil source

Libya has lost around 90000 bpd from pipeline blast: oil source

Armed men blew up a pipeline pumping crude oil to Es Sider port on Tuesday, cutting Libya's output by up to 100,000 barrels per day (bpd), military and oil sources said.The state-run National Oil Corporation (NOC) said in statement output had been reduced by 70,000-100,000 bpd.

The pipeline belongs to the Waha oil company, a local oil source said.

USA crude climbed $1.29, or 2.21 percent, to $59.76 a barrel after touching a session high of $59.86, the highest since late June 2015.

The move towards restart of a key North Sea pipeline, Forties, capped the rally.

Unverified photos of what is said to be a plume of black smoke coming from the site of the pipeline explosion are being shared on social media.

The holiday is still ongoing in many countries, but oil prices continued a slow upward climb Tuesday as the world returns to work after Christmas. It was not immediately clear what impact the blast will have on Libyan output, which has been recovering in recent months after being hampered for years by conflict and unrest. West Texas Intermediate, the US benchmark for the price of oil, was about about 2.2 percent as of 12:15 p.m.to reach 59.77 per barrel.

The producers have extended the supply cut agreement to cover all of 2018.

That is earlier than predicted in OPEC's latest official forecast, which calls for a balanced market by late 2018. Any drop in production will ease pressure on OPEC and its allies in their effort to drain an oversupply and prop up prices.

Forties is the biggest of the five North Sea crude streams underpinning Brent, the benchmark for oil trading in Europe, the Middle East, Africa and Asia.

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