Oil is set for its longest gain this year as Libya’s biggest oil field halts production.
The biggest oil field in Libya has suffered another outage. Meanwhile Russia has signaled it’s weighing an extension of OPEC-led production cuts. As a result, oil is headed for its longest run of gains this year.
Support from some members of the Organization of Petroleum Exporting Countries to extend the curbs has sparked a rally above $50 a barrel. The cuts have stabilized the market. At the same time, Russia will continue to watch inventory levels. However, it is too early to decide whether the pact should be prolonged.
Libya is exempt from the agreement. Nevertheless, the Sharara field had been pumping 200,000 barrels a day before the latest disruption. In addition, a week earlier, exports were interrupted by a pipeline halt.