Oil prices increased on Wednesday due to production outages in Libya, supply concerns from the Russia-Ukraine war and expectations of a more-than-expected drop in US oil stocks.
International benchmark Brent crude cost $108.27 per barrel at 0630 GMT for an 0.95% increase after closing the previous session at $107.25 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $103 per barrel at the same time for a 0.93% raise after the previous session closed at $102.05 a barrel.
A warning from the International Monetary Fund (IMF) on Tuesday over the economic impacts of the Russia-Ukraine war put pressure on prices. The global body advised that central banks worldwide act decisively against inflation as Russia's invasion of Ukraine raised global financial stability risks.
'Severity of disruptions in commodity markets and to supply chains are creating downside risks by weighing adversely on macrofinancial stability, inflation, and the global economy,' the IMF said in its latest report.
However, production cuts from Libya have supported an upward price trajectory, as the country declared a force majeure in a new oil field, Brega, on Tuesday.
The closure of the oil field, which is situated 600 kilometers east of the capital Tripoli, is the fourth in two days after similar shutdowns. The El-Feel and El-Sharara oil fields and the Zuwetina oil port were shut down after a group of people stormed the facilities and prevented employees from working. The oil company, however, did not identify this group of people.
Libya has the ninth-largest known oil reserves globally and the largest oil reserves in Africa.
Supporting higher oil prices, the American Petroleum Institute (API) announced late Tuesday its estimate of a fall of 4.5 million barrels in US crude oil inventories, compared to the market expectation of a rise of 2.5 million barrels.
The US Energy Information Administration (EIA) will release official oil stock data later on Wednesday. Oil prices are predicted to rise if the EIA signals a drop in stocks.
By Ebru Sengul Cevrioglu