Crude oil futures surged higher Tuesday after a report in the Wall Street Journal fueled concerns about Libyan upply interruptions.
Labor issues in Brazil have also kept oil prices afloat.
Libya’s oil production will drop by about 70,000 barrels a day to less than 400,000 barrels a day after the Eastern export terminal of Zueitina was blocked by an armed militia, an official told WSJ.
West Texas Intermediate oil for December delivery jumped rose $1.76, or 3.8%, to settle at $47.90 a barrel.
Rising U.S. inventories are likely to cap crude oil’s rally.
The API (American Petroleum Institute) will publish the weekly crude oil inventory report this afternoon. Last week, crude oil stocks rose by 4.1 MMbbls, the industry watcher said.
The material has been provided by InstaForex Company – www.instaforex.com