Libya halts oil production; prices drop three percent globally

Oil prices surged by three percent at market close on Monday following the announcement of production halts in Libyan oil fields and rising concerns over escalating conflict in the Middle East.

Brent crude futures rose by USD 2.41, or 3.05 percent, ending at USD 81.43 per barrel. Meanwhile, U.S. crude futures increased by USD 2.59, or 3.5 percent, closing at USD 77.42 per barrel, according to Reuters.

The price hike came after authorities in eastern Libya declared force majeure on all oil fields, ports, and facilities, resulting in a suspension of oil production and exports until further notice.

The National Oil Corporation in Tripoli has yet to confirm this measure.