Oil Climbs as Drone Strikes Libyan Energy Infrastructure
Oil prices surged on Wednesday as renewed supply concerns in Libya and uncertainty over shipping through the Strait of Hormuz heightened fears of further disruptions to global energy flows.
International benchmark Brent crude futures for October traded at $89.18 per barrel, up 0.3% from the previous close of $88.91. US benchmark West Texas Intermediate (WTI) futures for September traded at $83.57 per barrel, up 0.2% from $83.43 in the previous session.
Repeated attacks on energy infrastructure in Libya heightened concerns over potential supply disruptions, supporting oil prices’ upsurge,
A drone strike targeted a power station in the western city of Zawiya early Wednesday, following a series of attacks on critical energy infrastructure in the area.
The attack came after Libya’s National Oil Corporation (NOC) said the Zawiya Oil Refinery had been targeted for a fifth time since Sunday.
An explosive-laden drone struck the roof of a diesel tank on Tuesday, triggering a fire that was later brought under control.
Another drone targeted a separate diesel tank at the refinery earlier the same day, also causing a fire. NOC said refinery operations resumed following the earlier strikes, while fuel supplies and reserves remained unaffected.
Repeated attacks in Zawiya, coupled with recent clashes between armed groups, reinforced concerns over stability of Libya’s energy infrastructure. Libya produced around 1.35 million barrels of crude oil per day in July.
Meanwhile, developments surrounding the Strait of Hormuz added further upward pressure on prices. Iran’s parliament is preparing legislation that would restrict military and commercial vessels from countries Tehran considers “hostile” from entering the Gulf through the Strait of Hormuz without Iranian authorisation.
Ibrahim Azizi, chairman of parliament’s National Security and Foreign Policy Committee, said the proposed legislation aims to strengthen Iran’s authority and control over the strategic waterway.
The committee approved a bill on Aug. 9 aimed at securing the Strait of Hormuz and Gulf, according to Iranian officials.
The move adds to uncertainty over future shipping through the Strait of Hormuz, a critical route for global oil and liquefied natural gas flows, as Tehran and Washington have yet to reach a final agreement to end their confrontation. Iran Sets Steep Conditions for Reopening Strait of Hormuz
