Brent Crude price rises as protesters stop production at Libya field

Oil ticked higher today as a protest at one of Libya’s biggest oil fields hit the country’s output.

A local tribe demanding more development in their community shut down the 315,000 barrels-a-day El Sharara oilfield in the south west of the country.

Plant authorities declared a so-called force majeure, saying they were unable to fulfil a contract due to unforeseen circumstances as tribesmen refused to allow production to continue until they get better health services.

International standard Brent Crude rose approximately 1.3 per cent in the late afternoon to around $61 per barrel.

The news comes days after oil producers’ cartel Opec cut its production in the face of falling oil prices.

Fiona Cincotta, an analyst at City Index, said: “Oil was the standout gainer among commodities as Libya faced production problems at one its key fields.

“A force majeure on the exports from the El Sharara field combined with the recently announced Opec production cuts to help boost Brent crude prices 1.3% and WTI another 2.2%.”

David Madden, an analyst at CMC Markets added that thawing relations in a trade war between the US and China was also boosting the market: “Oil has been lifted by the feel good factor surrounding the US and China. Even though it was reported that talks are taking place that is enough of a sign to keep the bulls happy. The relatively cheap oil price makes it attractive too.”

Brent crude has dropped from around $85 in the beginning of October.