Crude prices were seen trading higher on Monday as the output from Libya was reduced by a third, while traders speculate that the ongoing tension in the country will disrupt further supplies.
Futures for the North American West Texas Intermediate (WTI) for June delivery climbed 0.64% higher to $102.24 a barrel on the New York Mercantile Exchange at the time of writing. While the European Brent crude for June settlement rose 0.24% to $110.13 on the ICE Europe Futures exchange at the same time.
Crude – Libya Output
Libya is the holder of Africa’s biggest oil reserves and a member of the Organization of Petroleum Exporting Countries (OPEC) and is struggling to handle the ongoing violence which has been weighing on the nation’s supplies.
On Sunday, armed gunmen stormed the country’s parliament, testing the government’s security three years after Muammar Gaddafi was overthrown.
Libya oil’s production dropped to 200,000 barrels per day, compared to 300,000 barrels per day recorded last week, according to analysts. Libya’s output levels were at 1.4 million barrels per day last year.
Russia energy Exports
Tensions between Ukraine and Russia, the world’s largest energy exporters, are among factors that could keep the Brent above the $100 a barrel level. Russia said it will not supply gas to Ukraine in June unless the country pays in advance, which could weigh on demand for oil and supplies from other European countries.
Ukraine’s presidential election which is scheduled for May 25 will one of the main focuses for investors this week, with escalated protests expected.
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