Oil price has climbed above $55 a barrel supported by production halt at Libya’s largest oilfield and increasing tension over Syria after the US missile attack.
Brent crude soared by 42 cents to touch at $55.66, while US crude gained 33 cents to reach $52.57, reported Reuters.
Libya’s Sharara oilfield closed again after a group blocked a pipeline that transports oil to the nearby terminal.
This field re-opened on 2 April after a week-long production halt due to ongoing conflicts and unrest in the country.
Oil price also grew due to increased tension in the Middle East. This region provides nearly 25% of global oil output.
Crude prices improved after the US fired missiles at a Syrian air base.
Currently, the OPEC members except Libya and Nigeria have curbed their output by 1.8 million barrels to reduce global oil oversupply.
The deal that started from 1 January is now in its fourth month.
On the price rise, PVM analyst Tamas Varga was quoted by the news agency as saying: “The relatively high OPEC adherence to the supply cut agreement and the general belief that the deal will be extended and, secondly, because of geopolitical developments.”
The increase in US drilling rigs for the 12th consecutive week restricted the prices from growing further.
The OPEC deal on production-cut has prompted many countries such as the US to increase its output to fill the gap.