The price of oil is growing in Monday’s trading amidst the news about a shutdown of Libya’s biggest El Sharara oilfield.
Brent futures for May settlement rose to $ 64.61/bbl Monday morning, which is 24 cents or 0.37% higher than the previous value. At the same time, 1 contract cost grew to $64.37/bbl on Friday evening at ICE Futures Europe, which is 54 cents or 0.85% higher than the previous value.
WTI futures for April settlement rose to $ 61.47/bbl Tuesday morning, which is 22 cents or 0.36% higher than the previous value. At the same time, 1 contract cost grew to $61.25/bbl on Friday evening at NYMEX, which is 26 cents or 0.43% higher than the previous value.
Oil production in Libya’s oilfield El Sharara was suspended on Sunday due to a shutdown of the pipeline between the oilfield and the Mediterranean port of Zawiya, according to Bloomberg agency.
As Takayuki Nogami, Chief Economist at Japan Oil, Gas & Metals National Corp., said, oil prices are reacting to a possible restriction on supplies from Libya due to El Sharara’s shutdown. “Everyone thought that geopolitical risks related to Libya are far behind, but it wasn’t true”.