Oil hits approximately $67 due to pipeline burst in Libya

Oil now sells for 67 dollars making this its highest selling price in two and a half years, due to an explosion on a crude oil pipeline in Libya and the voluntary supply cut, led by the Organisation of Petroleum Exporting Countries (OPEC).
Nigeria’s economy is mainly dependent on the sale of crude oil and Libya light crude has the same quality as Nigeria’s and is often in high demand.
Libya has lost around 90,000 bpd of crude oil from a blast on a pipeline feeding Es Sider port, a Libyan oil source said, adding that NOC was still assessing the damage.
A Libyan military source said earlier that armed men had planted explosives at the pipeline.
The country’s output had been recovering in recent months after being held down for years by conflict and unrest.
Brent crude, the international benchmark for oil prices, has risen to 66.76 dollars a barrel.
U.S. crude climbed to 59.76 dollars a barrel after touching a session high of 59.86 dollars.
The impending restart of a key North Sea pipeline, Forties, limited the rally.
The pipeline is being tested after repairs and full flows should resume in early January.
The producers have extended the supply cut agreement to cover all of 2018.

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