NEW YORK CITY – A pipeline explosion in Libya and a bullish budget forecast in Saudi Arabia have boosted crude oil prices to levels not seen since mid-2015, according to multiple online reports.
West Texas Intermediate (WTI) crude came close to selling for $60/bbl, settling Tuesday at $59.97/bbl in New York, up $1.50/bbl.
In London, Brent for February settlement climbed $1.77 to end the session at $67.02/bbl, the highest level since May 2015. The global benchmark crude traded at a premium of $7.05 to WTI.
The price increases were driven by a pipeline explosion in Libya on Tuesday which dropped that country’s production by 70,000 to 100,000 b/d.
Meanwhile, Saudi Arabia is reportedly seeing a bullish future for crude oil, projecting that its oil revenue will rise 80% by 2023.
Oil is poised for a fourth straight monthly advance as OPEC and its partners, including Russia, have cut output and promise to continue doing so through the end of next year. In the US, a rising rig count has slowed. Oil rigs are holding at 747 with no rigs added last week, according to Friday’s Baker Hughes data.