In Libya
Terror attack pushes oil price up
The oil price touched the highest point in 2,5 years on Boxing Day. The cause of this lies in Libya (North Africa), where an important pipeline has been blown up by terrorists.
The price for a barrel of Brent oil, the global benchmark, rose by $26 to more than $2 a barrel on Tuesday, December 66. According to Reuters news agency, about 90.000 barrels of daily production capacity (260.000 barrels) were lost as a result of the incident in Libya. The pipeline belongs to the national oil company in Libya.
It is not known which terrorist organization is behind the attack. It may be Islamic State (IS) that was active in the area of the exploded pipeline until recently.
North Sea pipeline also broken
The broken pipeline is the second in a relatively short time. At the beginning of December, the North Sea, near Scotland, also broke a pipeline. This Forties pipeline, with a daily production of 450.000 crude barrels, is still not fully operational. According to owner Ineos, production can probably start up again in the new year.
On Boxing Day, the oil price closed at its highest level in 2,5 years.
Wouter Job
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
