Oil volatile as Libya outage fuels supply woes, Shanghai prepares to reopen

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Oil prices were unstable on Tuesday as investors fretted over tight global supplies after Libya halted some exports and as factories in Shanghai prepared to reopen post a COVID-19 shutdown, easing some demand worries.

Brent crude was down 26 cents, to $112.90 a barrel after rising more than $1 to $114.21 earlier in the session.

U.S. West Texas Intermediate crude fell 45 cents, to $107.76 a barrel, after rising to $108.92 earlier.

Both benchmarks rose more than 1% on Monday after hitting their highest since March 28 on political crisis in Libya.

The country said it could not deliver oil from its biggest oil field and shut another field due to political protests.

The latest supply hit came just as fuel demand in China, the world’s largest oil importer, was expected to pick up as manufacturing plants prepared to reopen in Shanghai.

Oil prices, however, are still vulnerable to demand shocks as China continues to impose tough COVID-related curbs.




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