Oil Prices Rise After Oilfield Pipeline 2 is Closed by Loyal Troops to the Libyan National Army

Firman

Monday, Jan 20, 2020 | 02:13 pm

The attack on two oil tankers on Thursday in the Gulf of Oman caused one of the ships to catch fire. Photo: Reuters.

News24xx.com - Oil prices soared again in Asian trade on Monday (1/20/2020) morning. This happened after two large crude oil production bases in Libya began to close in the middle of a military blockade so that the flow of crude oil from OPEC members would be cut.

Reporting from Tempo.co, Monday, the price of Brent crude oil futures rose 75 cents, or 1.2 percent, to US $ 65.60 per barrel at 01.09 GMT (08.09 WIB). Meanwhile, the price of West Texas Intermediate (WTI) crude oil gained 60 cents, or one percent, to trade at US $ 59.14 per barrel.

In the latest developments in the prolonged conflict in Libya, where two rival factions have claimed the right to rule the country for more than five years. National Oil Corporation (NOC) on Sunday, January 19, 2020, said two large oil fields in the southwest had begun to close after troops loyal to the Libyan National Army (LNA) closed the pipeline.

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"If exports are stopped for a sustained period, tanks for storage will be filled in a few days and production will slow to 72,000 barrels per day (bpd)," an NOC spokesman said.

Libya has produced around 1.2 million barrels per day recently. Earlier, foreign countries agreed at a summit in Berlin to sustain a ceasefire in Libya, even when talks were overshadowed by the latest blockade.

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German Chancellor Angela Merkel told reporters that the Berlin Summit, which was attended by key supporters of competing Libyan factions, had agreed that a temporary ceasefire in Tripoli over the past week should be changed to a permanent ceasefire to allow the political process to take place.

The previous world oil price had soared more than US $ 70 per barrel when Iran and the US tensions peaked. However, in line with the tensions between the two countries, oil prices have dropped again.

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