Oil prices gain on Libya, Iraq supply worries

Oil prices rose on Tuesday after Libya declared force majeure on two major oilfields following a military blockade and protests escalated in Iraq, raising supply concerns.

Brent crude was trading up 11 cents, or 0.2 per cent, at $65.31 per barrel by 0101 GMT. US West Texas Intermediate crude futures were up 20 cents, or 0.3 per cent, at $58.74 a barrel.

“Rising disruptions in … Libya are likely to keep oil prices well supported in the coming days,” analysts from Australia and New Zealand Banking Group said in a note on Tuesday.

Two major oilfields in southwest Libya began shutting down on Sunday after forces loyal to Khalifa Haftar closed a pipeline, potentially reducing national output to a fraction of its normal level, the country’s National Oil Corp (NOC) said.