Oil stocks up as battle rages on in Libya
Oil stocks are back up Tuesday, amid confusion about the situation in Tripoli. After falling yesterday, oil stocks rose today in Europe, and prices for benchmark oil for October delivery were up to nearly $86 in Paris in the afternoon.
Joshua Lott / Reuters / File
Confusion over the extent of the rebels' hold on the Libyan capital and a rally in stock markets drove oil prices higher Tuesday, a day after they fell in anticipation of the end of strongman Moammar Gadhafi's regime.
On Monday, Libyans celebrated the news that insurgents had reached Tripoli, but late in the day the appearance of Gadhafi's son and potential successor, whom the rebels had claimed to have captured, called into doubt rebel declarations of victory.
In London, Brent crude was up 29 cents to $108.65 on the ICE Futures exchange.
Despite the initial jubilation, investors have also questioned how fast Libya's oil production could recover should the rebels take power. Fighting since February has cut the OPEC nation's crude output to 60,000 barrels a day from about 1.5 million, and the country's oil infrastructure has been damaged.
Capital Economics noted that with experts predicting Libya will take months, if not years, to ramp up production, traders may be putting hopes for the country on hold. They may instead be taking their cues from a rally in stock markets across Europe and Asia.