West Texas Intermediate (WTI) crude oil closed sharply higher on Monday on rising geopolitical risk as one of Libya's governments suspended exports while Israel and the Hezbollah militant group ratcheted up attacks, raising familiar concerns over a spreading Middle Eastern war.
WTI crude for October delivery closed up US$2.59 to settle at US$77.42 per barrel, while October Brent crude, the global benchmark, was last seen up US$2.45 to US$81.47 per barrel.
Libya's eastern government on the weekend said it is suspending oil exports as it continues to fight for control over the country with a competing government in its west. The shutdown of the bulk of the country's 1.5-million barrels per day of exports comes on squabbling over control of a central bank with a competing government in western Libya continues, Bloomberg News reported.
The cut to exports comes as Israel and the Iran-backed Hezbollah militia in Lebanon increased attacks on each other, with Israel on Sunday launching a series of airborne sorties on Hezbollah missile sites, while Hezbollah responded with rocket and drone attacks on Israel, according to reports.
The rising tension and reduced supply has boosted oil prices, which last week touched seven-month lows on concerns over the health of China's economy.
Source : MT Newswires
