Oil prices rise on Libya unrest

Old oil pumps, including one painted like a giraffe and another like a bird, stand in a scrap yard in the desert oil fields of Sakhir, Bahrain, Tuesday, March 3, 2015. Oil prices continued on their roller coaster ride as unrest in Libya caused it to rise again in the day’s trading.  AP

NEW YORK, United States – Oil prices continued their roller coaster ride as these turned higher Tuesday 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 $50.52 a barrel.

European benchmark Brent North Sea crude for April leaped $1.48 to $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.

Also, Islamist militants seized control of at least two oil fields in central Libya on Tuesday, a spokesman for the country’s oil industry security service told AFP.

“Extremists took control of the Al-Bahi and Al-Mabrouk fields and are now heading to seize the Al-Dahra field following the retreat of the force guarding these sites, due to lack of ammunition,” Colonel Ali al-Hassi said.

Violence and a slow-down at export terminals has already forced a shutdown at the Al-Bahi and Al-Mabrouk fields, about 310 miles (500 kilometers) east of Tripoli, for the last several weeks.

An attack on the sites in February killed 11 people and all staff were evacuated.

The Department of Energy’s weekly US inventory data to be released 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 February 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.

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