Libya has declared a force majeure on two facilities exporting 850,000 barrels of crude per day (b/d), pushing oil prices to highs not seen since 2014, Reuters reported.
Brent crude futures rose 0.8% to $77.90 per barrel at 06:50 GMT on July 3, while West Texas Intermediate (WTI) futures reached $74.73, up 1.1%.
The rises were partly triggered by the Libyan National Oil Company’s (NOC) announcement that loadings from Zueitina and Hariga ports would be temporarily suspended. The Tripoli-based NOC’s declaration came as General Khalifa Haftar’s eastern-based Libyan National Army blockaded the ports of Ras Lanuf and Es Sider following clashes between the rival forces.
Ongoing disruptions to Canadian supply also contributed to the upward pressure on crude futures.
The NOC previously warned that declaring force majeure on the ports would carry “significant short and long-term consequences for NOC-affiliate companies, the national economy and the Libyan people,” according to Reuters.
In addition to the crude supply losses, the NOC said that output of natural gas used for local power supplies would fall by 710 million standard cubic feet per day, more than 20,000 b/d of condensate would be lost, and the NOC would incure daily revenue losses of $67.4 million.