Crude prices edge up due to trouble at Libya’s crude ports
On Monday, crude prices recovered their losses during early Asian trade on news that military conflicts in Libya had impacted its crude exports over the weekend.
In New York, October delivery light, sweet crude futures traded at $43.84 per barrel, soaring 1.9% during the Globex electronic session. Additionally, on London’s ICE Futures exchange November delivery Brent crude futures tacked on 1.7%, trading at $46.53 per barrel.
A militia that until this month had controlled Libya’s crude ports for years after the 2011 ouster as well as the death of dictator Moammar Gadhafi, the Petroleum Facilities Guards dared to retake two crude ports, Ras Lanuf and Sidra, in the country’s central coast on Saturday night, as militia members told.
On Sunday, the guards were forced out again by the Libyan National Army, a militia, which had promised to reopen the ports for exports.
The crude market is definitely reacting to that news, though we should realize that it could be just a temporary setback in the energy market.