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Oil Rallies as Sharara Oilfield Closes, Geopolitical Risks Rise

April 11, 2017 at 0:33 by Vladimir Vyun

Crude oil gained on Monday and extended gains on Tuesday due to disruption of supply from Libya’s biggest oilfield. Sharara oilfield, that was just recently reopened, halted its production on Sunday after an unknown group blocked a pipeline linking it to an oil terminal.

Crude also rallied as Russia was considering to prolong OPEC-led oil production cuts. Russia was among the countries outside of the OPEC that joined the deal to reduce output to boost oil prices.

Friday’s US attack on a Syrian air base was another reason for the rally. And while major oil producers were not involved in the conflict, rising geopolitical tension in Middle East was enough to scare investors.

Futures for delivery of WTI crude oil in May rose 0.13% to $53.15 per barrel as of 00:15 GMT on NYMEX today. June Brent crude also gained by 0.13%, trading at $56.05 per barrel on ICE.

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