Chart of the week: will the oil rally last?

"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.

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