Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures soared during the Monday Asian trade session after two Libyan production sites began closing as a military blockaded took hold. This will constrict the supply of oil from this OPEC member nation.
As of 1:10 am GMT, the international crude oil futures benchmark was trading higher. This contract added 75 cents or 1.2 percent to trade at $66 per barrel. This is Brent’s highest price point since January 9.
The U.S. West Texas Intermediate (WTI) crude futures contract added 60 cents to trade at 59.14 a barrel. Earlier in the session the WTI contract was trading at its highest price point since January 10 at $59.73 per barrel.
Ongoing Unrest in Libya Threatens Crude Oil Supply from North Africa and the Middle East
There are two rival factions in Libya that claim the right to rule the country. This fight has been intensifying for five years. On Sunday, the Libyan National Oil Corporation (NOC) said that two large oil fields in the southwest were starting to close operations after the Libyan National Army closed a key pipeline.
According to a NOC spokesman, if Libyan exports come to a halt for any length of time, storage tanks will start to fill within days. Production will slow down as well. Production will fall from 1.2 million barrels per day to 72K barrels per day.
European nations are currently holding a key summit in Berlin to keep a shaky truce in Libya from falling apart. However, these talks are now being overshadowed by this new development.
In a news conference at the summit, German Chancellor Angela Merkel has said that the main factions have agreed to a tentative truce over the past week. They are hoping this could become a permanent ceasefire but today’s news of a blockade is endangering this process.
