Oil Recovers After Libya Turmoil Escalates

Oil rebounded by more than $2 toward $62 a barrel on Tuesday as fighting in Libya, stronger equity markets and firm demand helped Brent futures recover from their biggest one-day loss in a month.

Brent crude fell more than $3 on Monday as traders refocused on rising global supplies, which have pushed oil prices down more than 60 percent between June and January.

Rival Libyan forces carried out tit-for-tat air strikes on oil terminals and an airport, reviving fears over supplies from the OPEC member and helping Brent recover above the $60 level that has anchored prices since mid-February.

 
Oilfields and ports are increasingly a target in Libya’s conflict, which pits two rival governments and their armed forces against each other, nearly four years after the uprising that ousted leader Muammar Gaddafi. Forces claiming allegiance to Islamic State have also targeted oilfields and pipelines.

via Reuters

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