Rakesh gupta editor,Mumbai,www.mcxbaba.com
oil valuations rose in Asia today as dealers reacted to a surprise Islamist punch on Libya’s main oil terminals that left 22 soldiers erased. US benchmark West Texas Intermediate for February delivery rose 28 cents to USD 56.12 in mid-morning trade, while Brent for February gained 13 cents to USD 60.37.
Trading volumes in Asia were thinner than constant with sizable regional financial bazaars including Hong Kong and Australia closed today. US and European stock markets will also be shut for the Boxing Day holiday. The attack in Libya’s oil-rich region yesterday, saw militiamen associative to the Fajr Libya, or Libya Dawn, target Al-Sidra port by firing rockets from speedboats, setting an oil cistern on fire, security forces said. Soldiers damaged three of the vessels before clashes in which the militants were eventually repelled.
Military and medical sources 18 soldiers and a Fajr Libya fighter were killed yesterday in fighting in Sirte, and another four soldiers slain in Al-Sidra.
Al-Sidra is located in the country’s “oil crescent” section that has been the scene of recent fighting between government forces and Fajr Libya. Since fresh clashes between government forces and the jihadists erupted on December 13, Libya’s oil production has dropped to nearly 350,000 barrels per day compared with 800,000 previously, according to industry experts.
Production in Libya, a member of the OPEC oil-producing cartel, has only just started to rise following a prolonged disruption due to civil unrest.