UPDATE 4-Brent climbs above $107 as Libya output drops

Ron Bousso
Monday, 28 Oct 2013 | 8:10 AM ET

* Libyan crude oil exports fall to lowest level in six weeks

* Market eyes talks between Iran and world powers this week

LONDON, Oct 28 (Reuters) - Brent crude rose above $107 a barrel on Monday, ending three days of losses, after oil exports from Libya plunged following fresh unrest, reviving supply concerns.

Brent for December delivery was up 67 cents at $107.60 a barrel by 1208 GMT. U.S. crude was down 11 cents at $97.74 a barrel.

"When there is less Libyan crude available it puts pressure on Brent, which are of similar light sweet grades," said Christopher Bellew, oil trader at Jefferies Bache.

Libya's crude oil exports have fallen to the lowest level in six weeks after operations at its western port of Zawia were suspended at the weekend, a senior official at Libya's National Oil Corp (NOC) and trading sources said.

Locals "stormed" the 330,000 barrels per day (bpd) El Sharara oilfield on Saturday, the NOC official said, which provides crude for the port and the 120,000 bpd Zawia refinery.

With the loss of Zawia, Libya's exports are less than 250,000 bpd, according to Reuters calculations, compared with a capacity of more than 1.2 million bpd.

Crude output from the Organization of the Petroleum Exporting Countries (OPEC) member partly resumed in September following weeks of unrest in the north African country as some oilfields in the east remain shut.

Brent fell 2.7 percent last week, the biggest weekly drop in a month, as concern about higher supply and faltering demand offset signs of faster economic growth in China.


Investors are also keeping an eye on a two-day meeting of experts from Iran and six world powers on Wednesday.

Western diplomats say the meeting, scheduled to take place a week before the next round of negotiations in Geneva in November, could be instrumental in defining the outlines of any preliminary agreement on Iran's uranium enrichment campaign.

U.S. and European sanctions against Iran over its disputed nuclear programme have cut oil exports from the OPEC member by more than half, underpinning global oil prices.

Iran has not halted its most sensitive uranium enrichment work, a senior Iranian parliamentarian said on Saturday, contradicting a statement by another lawmaker last week.