Chart of the week: will the oil rally last?

A disruption to supplies from the North African country could give oil prices a big short-term boost.

942_COTW-634

"Just as its oil sector looked set to stage a recovery, Libya is heading back towards bloody chaos that puts output and exports at risk," Julian Lee notes on Bloomberg.A disruption to supplies from the North African country could give oil prices a big short-term boost. Global oil supplies already look tight due to the chaos in Venezuela, US sanctions on Iran and output cuts by oil-cartel Opec.

The biggest buyers of Libya's crude are Mediterranean countries in Europe. Fears that the conflict might spread through the region have already driven oil prices higher above $70. However, US shale production hit a new record recently, so higher supplies could soon undermine the rally.

Recommended

Just how green is nuclear power?
Energy

Just how green is nuclear power?

Nuclear power is certainly very clean in terms of carbon emissions, but what about the radioactive waste produced as a byproduct? It’s not as much of …
22 Jan 2022
Oil price hits seven-year high after Abu Dhabi attack
Oil

Oil price hits seven-year high after Abu Dhabi attack

The oil price hit a seven-year high after Houthi rebels in Yemen staged a drone attack on an oil storage site in Abu Dhabi.
21 Jan 2022
Energy prices will keep rising – here’s how to invest
Energy

Energy prices will keep rising – here’s how to invest

Energy prices will keep rising for the foreseeable future – it is a simple matter of supply and demand. Merryn Somerset Webb explains how you should i…
14 Jan 2022
Why the uranium price is set to keep rising
Energy

Why the uranium price is set to keep rising

Turmoil in Kazakhstan – the world's leading producer of uranium, has sent the uranium price up by more than 8% in a week. And that's not the end of it…
14 Jan 2022

Most Popular

Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Interest rates might rise faster than expected – what does that mean for your money?
Global Economy

Interest rates might rise faster than expected – what does that mean for your money?

The idea that the US Federal Reserve could raise interest rates much earlier than anticipated has upset the markets. John Stepek explains why, and wha…
6 Jan 2022