Oil prices spiked up on Wednesday, following supply disruption in Libya reaching near a 2015 high while a weak dollar gave further support price rally.
Oil prices have seen 20% to 25% rise last month despite inventory buildup in US, and indications from the Organization of Petroleum Exporting Countries (OPEC) that it could decide to maintain its supply level during next month’s meeting.
However, the rally in prices has stopped the demand for cutting output from OPEC.
Saudi Arabia said that it will not change prices for its crude oil, which it sells at a discounted level for Asian buyers in June as part of its effort to continue to gain Asian market share.
A poll by news agency Reuters revealed that crude inventories in the US continued to rise for the 17th consecutive week, highlighting an increase of 1.5 million barrels.
Industry group American Petroleum Institute released a report, which suggested that crude inventories in the country this week declined by 1.5 million barrels.
Officials said that Libyan oil output is less than 500,000 barrels per day (bpd) at present, which represents a third of what the country pumped prior to 2010.