Oil traders have an eye on developments in Libya over the weekend
Oil port blockades and pipeline shutdowns are the news out of Libya.
Libya's National Oil Corp. confirmed the Libyan National Army militia had shut an export pipeline
- this will reduce available output from two western oil fields, Sharara and el-Feel (combined these two pump out around 400k barrels a day)
This is in addition to the militia closing ports under their control
- in central and eastern Libya
- cut total output by around 700k barrels a day
Libya normally pumps out around 1.3 mln barrels a day.
Supply reduction of any item should impact to push its price up, at least in the short term.
In the FX space a higher oil price should impact to boost a currency such as CAD.