Brent Jumps After Explosion At Major Oil Pipeline In Libya

Update from Reuters: "Libya has lost around 90,000 bpd of crude oil from a blast on a pipeline feeding Es Sider port, a Libyan oil source said. NOC was still assessing the damage, the source said. A Libyan military source said earlier armed men had planted explosives at the pipeline."

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After a quiet overnight session, the price of Brent Crude spiked following news of an explosion at a Libyan crude oil pipeline that feeds the Es Sider sea terminal - home of the largest oil depot in Libya - a source from the Libyan National Army told The Libya Times Tuesday. The blast happened near 30km northwest of Marada, the source said.

At the same time, the source accused militants from the Benghazi Defense Brigades of the blast. While the reasons for the explosions haven't been determined yet, media reports are suggesting that it was possibly a terrorist attack.

Meanwhile, the Akhbar Libya news outlet reported that the gas pipeline belonged to the al-Waha oil company. The group's press service claimed that the explosion could have been caused by a terrorist attack, adding that the communication with an engineering crew working on the scene had been lost.

The media outlet added that the group had sent its forces to the explosion site, located between Es Sider port and an oil field.

While there is still no official update on what impact the explosion could have on Libyan oil output, Brent is higher about 40 cents on the news...

... with Bloomberg reporting that Libya's Waha output is said to drop 60-70kbpd after the explosion.