Oil rises to $60 per barrel, Libya fire supports | Reuters.
(Reuters) – Brent crude oil rose to $60 per barrel on Monday, supported by concerns about disruption to exports from Libya, but a global supply glut kept prices nearly 50 percent off their peak for the year.
A fire at one of Libya’s main export terminals has destroyed 800,000 barrels of crude – more than two days of the country’s output – officials said, as clashes escalated between factions battling for control of the nation.
Libya currently produces around 385,000 barrels per day (bpd) of crude oil – down from peak production of over 1 million bpd – but this is a small fraction of the global supply glut, analysts said.
“There’s tension in Libya, but liquidity is very thin so not much is needed to move oil prices,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.
Trade was sparse, with many investors away for the festive period.
