Today, oil prices ticked higher amidst a protest at one of the largest oil fields in Libya affected the output of the country.
A local tribe that is demanding more development in their community closed down the 315,000 barrels-per-day El Sharara oilfield that is located in south-west part of the country.
The plant authorities launched a so-called force majeure. They said that they were not able to fulfil a contract because of unforeseen circumstances as tribesmen declined to allow production to proceed until they get better health services.
Brent Crude, the international standard, increased by about 1.3 percent in the late afternoon to approximately $61 per barrel.
The news comes days after Opec, the oil producers’ cartel, reduced its production in the face of decreasing oil prices.
An analyst at City Index, Fiona Cincotta, stated: “Oil was the standout gainer among commodities as Libya faced production problems at one its key fields.”
She added: “A force majeure on the exports from the El Sharara field combined with the recently announced Opec production cuts to help boost Brent crude prices 1.3% and WTI another 2.2%.”
An analyst at CMC Markets, David Madden, added that the thawing relations in a trade war between the United States and China were also boosting the market. He stated: “Oil has been lifted by the feel good factor surrounding the US and China. Even though it was reported that talks are taking place that is enough of a sign to keep the bulls happy. The relatively cheap oil price makes it attractive too.”
The price of Brent crude has fallen from around $85 ar the start of October.