Oil rises after Libya had to stop some exports
Oil prices rose on Tuesday as investors worried about global supply shortages after Libya had to halt some exports and factories in Shanghai prepared to reopen following the COVID-19 shutdown, easing demand concerns.
Brent crude futures rose 61 cents, or 0.5%, to $113.77 a barrel at 0349 GMT, while West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.3%, to $108.54 a barrel.
Earnings were limited by the dollar at a two-year high. A strong dollar weakens the hand of oil buyers who hold other currencies.
The prospect of banning Russian oil due to the European Union's invasion of Ukraine continues to keep the market tense. On Tuesday, Ukraine said Russia which calls its actions a "special operation" had launched a new offensive, expected to take place in the east of the country.
The fact that the increase in the number of countries that ban Russian oil imports will mean that oil prices will exceed historical peaks affects market sentiment.
Libya announced that it could not supply oil from the largest oil field and closed another field due to political protests. Both benchmarks rose more than 1% in the previous session after hitting their highest levels since March 28 amid the political crisis in Libya.
The reopening of mainland cities and Libya's response to the shocks in oil markets are essential for global prices to return to a sustainable trajectory and for a sustainable economic recovery that supports oil demand.
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