Supply Disruptions in Libya and Iraq Send Oil Prices Higher
Oil prices rose on Monday following news of major supply disruptions in Libya and Iraq over the weekend. On Sunday, Libya’s National Oil Corporation (NOC) released a statement that rebel military commander Khalifa Haftar’s Libyan National Army (LNA) had shut down a pipeline to the coastal city of Zawiya, forcing NOC to cut production from the key Sharara and El Feel oil fields in the south-west of the country. NOC warned that a continued blockade of exports could result in the complete shutdown of Libyan oil production within 5 days. Meanwhile in Iraq, production from the Al Ahdab oil field located 180 km south-east of Baghdad was also forced to shut over the weekend as local security guards seeking permanent employment contracts blocked access to the facility.