Africa Oil & Gas: Libyan Pipeline Explosion Pushes Brent Prices Upward

A general view of the El Sharara oilfield, Libya
A general view of the El Sharara oilfield, Libya December 3, 2014.Ismail Zitouny/File Photo

After a quiet overnight session, the price of Brent Crude spiked following news of an explosion at a Libyan crude oil pipeline that feeds the Es Sider sea terminal – home of the largest oil depot in Libya – a source from the Libyan National Army told The Libya Times Tuesday. The blast happened near 30km northwest of Marada, the source said.

At the same time, the source accused militants from the Benghazi Defense Brigades of the blast. While the reasons for the explosions haven’t been determined yet, media reports are suggesting that it was possibly a terrorist attack.

The media outlet added that the group had sent its forces to the explosion site, located between Es Sider port and an oil field.

While there is still no official update on what impact the explosion could have on Libyan oil output, Brent is higher about 40 cents on the news…

(Click to enlarge)

… with Bloomberg reporting that Libya’s Waha output is said to drop 60-70kbpd after the explosion.

By Zerohedge.com

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