Oil boosted by Libya output fall and US data; WTI jumps

Getty Images

Crude futures rose sharply on Monday, with U.S. oil settling just shy of $99 after a drop in Libyan oil exports revived supply concerns, while strong gains in U.S. industrial output boosted demand hopes.

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. Libya's exports are now less than 250,000 barrels per day (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. Oil production of OPEC-member Libya dropped after new protests over the weekend at its oil fields and ports, boosting the European benchmark's premium over U.S. oil prices by about $1.60 a barrel.

London Brent crude for December delivery was trading about $2 higher above $109 a barrel, after settling down 6 cents on Friday. U.S. crude for December delivery ended up 83 cents at $98.68 per barrel.

For more information on commodities prices, please click here.