Oil prices leap as protests in Libya disrupt output

Oil prices leap as protests in Libya disrupt output

Oil Trains First RespondersOil prices climbed to new highs on Tuesday after protests in eastern Libyan oil port of Zueitina weighed on exports.

Most of Libya’s ports were closed in the wake of the Libyan revolution that ousted President Muammar Gaddafi, so prices are very sensitive to any drop or rise in Libyan exports.

Recently, crude prices have took a boost from the civil war in Yemen and drop in the U.S. dollar versus majors.

Later in the day, the American Petroleum Institute will release U.S. oil inventory data for last week, while the Energy Information Administration (EIA) will announce its inventory figures on Wednesday.

The build of U.S. crude oil slowed in the week through April 29 as inventories rose 1.9 million barrels to 490.9 million barrels, to remain near the highest level in 80 years, after edging up 5.3 million barrels a week before.

The dollar index, which tracks the green currency’s movement versus a basket of six major currencies, pared its earlier gains as it fell from a peak of 96.08 to hover around 95.33.

As is well known, the drop in the dollar gives a boost to all dollar-priced commodities as they become cheaper.

Investors will give utmost attention to the nonfarm payrolls data, which may show the addition of 233,000 jobs in April after a disappointing 126,000 jobs in March.

Brent crude for June delivery is currently trading around $68.10 a barrel, the highest in 2015, after the breach of resistance at $67.60.

Crude oil climbed to a high of $60.80 a barrel, marking its highest level since December.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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