Oil prices rise as Libya's NOC warns of possible force majeure
Brent gains 1.7% and WTI 2.1% after protests halt production at Libyan oil fields
Published
Chart: USO, a fund that tracks crude, daily closes either side
Brent crude rose 1.7% and West Texas Intermediate rose 2.1% after Libya's National Oil Corporation said it may declare force majeure. The corporation cited protests that have suspended production at some of the country's oil fields.
Force majeure would let Libya suspend contractual delivery obligations without penalty, a step oil producers take when they cannot meet supply commitments.
The move adds to gains already built into oil prices from tension in the Middle East, including the conflict involving Iran and concerns over shipping through the Strait of Hormuz. Libya's lost output is small next to those risks, but any confirmed disruption to exports would tighten supply further at a time when prices are already elevated.