DMEA: Global oil prices rise following Libyan production shutdown

Oil prices rose significantly on August 26 following reports of Libyan production being shut down over political disagreements, with brent crude futures sitting 3% higher at $81.43 per barrel and West Texas Intermediate (WTI) growing by 3.5% to $77.42 per barrel on the day, according to the Financial Times.

Prices had been expected to rise over ongoing tensions in the Middle East, related to Israeli military strikes in southern Lebanon – which have threated to hamper diplomatic efforts in the region. According to analysts however, news from Libya had instead been the primary, unexpected factor for the rise. Phil Flynn, Price Futures Group, said regarding the development that oil prices had “downplayed geopolitical risks because there has been no major disruption of supply”.