Global oil rally offers renewed financial breathing space for Libya

Global oil prices recorded a sharp increase on Friday, with benchmark crude climbing above $90 per barrel for the first time since April 2024, driven by rising geopolitical tensions and growing concerns over potential disruptions to global energy supplies.

Futures for Brent crude, the international benchmark used to price much of the world’s oil, rose to $91.22 per barrel, marking their highest level in nearly two years.

By 17:00 (Libya time), futures for US West Texas Intermediate (WTI) for April delivery had surged 9.96 per cent to $89.09 per barrel.

Meanwhile, Brent crude futures for May delivery climbed 6.80 per cent, reaching $91.22 per barrel.

The rise comes amid escalating geopolitical tensions in the Gulf region, which have fuelled fears among traders and analysts of possible disruptions to oil supply routes in one of the world’s most important energy-exporting regions.

For Libya, which relies heavily on oil exports as the backbone of its economy, sustained prices above $90 per barrel could translate into higher national revenues and improved fiscal inflows, provided production and export levels remain stable.

In remarks to the Financial Times, Qatar’s Minister of State for Energy Affairs, Saad Al-Kaabi, warned that oil prices could climb as high as $150 per barrel within the next three weeks if geopolitical tensions continue to escalate and supply disruptions intensify.

Financial and consultancy institutions have also cautioned that a prolonged conflict could significantly affect global oil supplies, raising the possibility that a substantial portion of production could be halted in a short period.

Energy markets are now closely monitoring developments in the region, as investors weigh the risk of further supply shocks against tightening global inventories.