Crude Rises as Libya Unrest Threatens Supply
By Mark Shenk May 19, 2014 11:26 AM ET
West Texas Intermediate oil rose to a four-week high after Libya’s parliament was attacked, bolstering concern that crude production will further slide in the holder of Africa’s biggest reserves. Brent traded near $110 a barrel.
Futures climbed as much as 1 percent in New York. A Libyan military police chief said he disbanded parliament after a militia he backs stormed it yesterday. Crude output in the country is down about 80 percent from a year ago, Bloomberg data show. WTI extended gains as the dollar fell against most major currencies bolstering the appeal of commodities to investors.
“The situation in Libya is stirring things up again,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “It looks like things are getting even more chaotic than before, which could further reduce exports. The dollar is also under pressure, which is giving us additional support.”
WTI for June delivery advanced 66 cents, or 0.6 percent, to $102.68 a barrel at 11:24 a.m. on the New York Mercantile Exchange. Prices climbed to $103.09, the highest intraday level since April 22. June futures expire tomorrow. The more-active July contract increased 54 cents, or 0.5 percent, to $102.12.
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