Oil climbed to the highest level this month as investors weighed supply disruptions in Venezuela and Libya. Futures advanced 2.4% in New York on Wednesday. Venezuela’s ability to export crude is in jeopardy after the U.S. sanctioned a unit of Rosneft PJSC, the country’s main oil shipper. Meanwhile, Libya’s cease-fire talks were suspended after the capital’s port was shelled by forces loyal to military commander Khalifa Haftar, who has forced a blockade of the country’s crude exports. “It’s a big turnaround,” said Mike Hiley, head of OTC energy trading with LPS Partners. “There’s no doubt the market is getting a lift from Libya and sanctions.”
Amid the geopolitical tensions, prices shrugged off an industry report showing a build in U.S. crude stockpiles last week. The American Petroleum Institute reported that inventories rose 4.16 million barrels, according to people familiar with the data. Distillate supplies fell 2.63 million barrels while gasoline stockpiles declined by 2.67 million barrels, API said. The U.S. Energy Information Administration will publish its weekly petroleum report on Thursday, a day after its usual release due to the President’s Day holiday on Monday. The crude stockpile gain would be the fourth consecutive build, the longest streak since November, if government data confirms it.