Brent’s value increased today after Libya failed to strike a deal with tribal leaders to remove blockade on oil exporting ports, reviving supply concerns.
Brent crude increased by 35 cents to $109.18 a barrel, while US crude dropped by 27 cents at $96.33, reported Reuters.
The Libyan militia leader, Ibrahim al-Jathran, who has kept many of the country’s oil ports closed since July, said on Sunday that his group will not reopen the ports until the demands for greater regional autonomy is met.
The port closures, which has cost the country $7bn, have also cut vital oil exports to 110,000 barrels per day, from more than one million in July.
Ibrahim al-Jathran has announced to continue the blockade despite an announcement last week that leaders of tribes, including the one of al-Jathran, had agreed to lift the blockade of terminals on Sunday following mediation by tribal leaders.
Jathran used to head a force protecting oil installations until he defected with his heavily armed men in the summer and seized the Ras Lanuf, Es-Sider and Zueitina ports to boost his campaign for more regional autonomy and a greater share of oil sales.
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Investors are waiting for the key announcement by the US Federal Reserve scheduled on Wednesday this week, which has worked to boost stock prices recently.
Traders are expecting a reduction in the amount of stimulus and the Federal Reserve may start by cutting its asset-buying programme by $10bn a month.
Image: Brent rises above $109 on Libya supply concerns. Photo: courtesy of freedigitalphotos.net.