LONDON: Brent crude oil rose towards $108 a barrel yesterday, supported by new worries over Libyan supplies and expectations for a drop in crude inventories in the United States. Tensions in Libya escalated after a heavily armed eastern autonomy group said yesterday it would invite foreign companies to buy oil from seized ports and protect arriving tankers, in defiance of the government in Tripoli, which has vowed to stop them. While Libyan officials say production could recover to nearly 600,000 barrels per day (bpd) this week, any attempt to export crude from ports without Tripoli’s permission could lead to clashes. “The situation boils down to the central government being unable to access major export facilities without risking a prolonged and violent civil war and the separatists being unable to secure exports without access to naval forces,� analysts at JBC Energy in Vienna said in a note. Brent crude for delivery in February was up 52 cents at $107.87 a barrel at 1256 GMT, after settling up 62 cents on Tuesday. The contract edged above its 200-day moving average at $107.44, a key technical indicator watched by traders. The Libyan defence ministry said it would destroy any tankers loading oil in the Cyrenaica region, where the ports are controlled by armed protesters led by tribal leader and 2011 civil war hero Ibrahim Jathran. Libya’s oil exports have fallen from more than one million bpd in July, when the strikes began, supporting international oil prices. The government is expected to increase exports, however, following the restart of the 350,000bpd El Sharara oilfield at the weekend.

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