Oil prices rise on Libya unrest

March 04, 2015 | 10:51

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Oil prices turned higher on Tuesday (Mar 3) on unrest in exporter Libya and as the market expected another rise in US inventories.

Oil prices turned higher on Mar 3 on unrest in exporter Libya and as the market expected another rise in US inventories. (File photo: AFP/Andy Buchanan)

NEW YORK: Oil prices turned higher on Tuesday (Mar 3) on unrest in exporter Libya and as the market expected another rise in US inventories.

In New York trade, West Texas Intermediate (WTI) for April delivery rose 93 cents to US$50.52 a barrel. European benchmark Brent North Sea crude for April leaped US$1.48 to US$61.02 a barrel in London.

"Geopolitical tension returns to the fore to support oil prices today, as Libya experiences fresh attacks on its oil fields by militants," said Matt Smith of Schneider Electric.

Militia warplanes attacked a major oil export terminal in Libya but were driven off by anti-aircraft fire without being able to hit their targets, a spokesman for guards there said.

The Department of Energy's weekly US inventory data to be released on Wednesday will be the market's next focus, said Tim Evans of Citi Futures.

"Most observers (are) looking for an extension of recent trends, with limited refinery runs allowing a further build in US crude stocks for the week ended Feb 27, but also translating into a decline in product inventories," he said.

Last week, the department reported that US oil stockpiles had surged by 9.4 million barrels to a record 434.1 million barrels.

AFP

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