yolowire.com - Crude Oil prices are sharply higher as the conflict in the Middle East between Israel and neighboring countries escalates and risks developing into a regional war.
The price of Brent crude oil, the international standard, is up 3% and trading at $81 U.S. per barrel. It’s the first time Brent crude oil has traded above $80 U.S. in a month.
West Texas Intermediate crude oil, the U.S. benchmark, is also up 3% and trading at $77 U.S. a barrel, its highest level since June of this year.
The rise in oil prices comes as Israel and Hezbollah exchanged rocket and drone strikes over the weekend, raising fears that the current conflict will become a regional war.
At the same time, oil prices are also being lifted by news of a near total production shutdown in Libya.
Libya's government has reportedly announced the closure of all oil fields, halting both production and exports.
The shutdown comes as waring factions within Libya fight for control of the country’s central bank and its oil revenue.
Also, Russia's largest oil refinery in Siberia experienced a fire in recent days. However, the Russian government said the fire will not impact its production plans.
The reason for the fire at the Russian oil refinery has not been made public.