Oil prices rise on Libyan violence
Publish Date: May 19, 2014
Oil prices rise on Libyan violence
Vegetation is covered with oil from a pipe that burst causing about 10,000 gallon of crude oil spill onto streets covering an area of about a half-mile May 15, 2014, in Los Angeles, California. Getty Images/AFP
  • mail
  • img

SINGAPORE - Oil prices edged higher in Asia Monday on escalating violence in crude producer Libya following a coup attempt by a rogue general that has raised concerns about potential supply disruptions, analysts said.

The US benchmark, West Texas Intermediate (WTI) for delivery in June, rose 17 cents to $102.19 in afternoon trade, while Brent North Sea crude for July rose 24 cents to $109.99.
Armed groups attacked Libya's interim parliament and an airbase in the east Sunday, adding to turmoil in the country where a colonel claiming to speak on behalf of the army declared that parliament had been suspended.
"The situation in Libya is having a firm impact on sentiment," Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.

LIBYA, Tripoli : Chief of Staff of the Libyan Armed Forces, Major-General Abdessalem Jadallah al-Salihin (L) looks on as Libya's interim premier Abdullah al-Thani, speaks during a press conference in Tripoli on the security situation in the country's eastern coastal city of Benghazi on May 16, 2014. Libyan air force units loyal to a retired general bombed positions held by ex-rebel Islamist groups in Benghazi as clashes erupted in the cradle of the 2011 revolution. AFP PHOTO
"There has been no impact on supply but it is a good reminder to investors of potential disruptions that exist not only in Ukraine but also in oil-producing countries like Libya," he said.
Since the toppling of Dictator Moamer Kadhafi in 2011, successive Libyan governments have struggled to impose order as heavily armed former rebel brigades carve out their own fiefdoms.
The violence in Libya, a member of the OPEC cartel, comes just weeks after the resumption of oil exports following a nine-month blockade of sea terminals by rebels.
Its exports are expected to quadruple to one million barrels per day by mid-June, as slashed output is restored.
McCarthy said oil prices also remain propped up by the Ukraine crisis, where rebels are attempting to break away from the former Soviet state and become a part of Russia.
Ukraine is a major conduit for Russian oil and gas exports to Western Europe, and analysts fear that an escalation of the crisis could hit supplies and send prices soaring.


The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Business urged to embrace apps
FEWER than 1 in 5 Ugandans have access to formal lending or borrowing and rural Ugandans are left to fend financially for themselves...
Woman arrested for impersonating URA staff
A 40-year-old woman has been arrested over alleged impersonation. Roy Rukundo, a resident of Nabbingo in Wakiso district is accused of impersonating Uganda Revenue Authority (URA) staff with intent to extort money....
BAT tobacco giant paid bribes in east Africa
British American Tobacco paid bribes to officials in east Africa, including two members of a convention created under the World Health Organization (WHO) to combat smoking, according to a BBC investigation airing on Monday....
Govt  allocates sh8bn for skills training
Government has announced that it will allocate more funds to Enterprise Uganda to train more Ugandans in business, managerial, marketing and communication skills to run their own enterprises, according to the state minster for Finance, David Bahati...
Human resource training:  A missing link in cooperatives
Strategic human resource education and training remain a key missing link in the ongoing movement to revive co-operatives fully, a co-operative consultant has said....
Black Friday online shopping rivals stores in US
The closely watched survey said that about 151 million people shopped either in stores and/or online over the long weekend in the United States...
Do you think Uganda is winning the fight against AIDS?
Can't Say
follow us
subscribe to our news letter