Libya could see an increase in production in the coming days after the reopening of a key crude oil export pipeline from the Sharara field, the country's largest oil field, after it was closed Sunday, sources said.
Futures in NY rose 0.2 percent after a 3.6 percent decline last week.
It meant Libyan oil production has plunged by nearly 40% from mid-February levels, as just over a week ago, the 90,000 b/d Elephant or El Feel field also shut due to protests by local tribes and guards. The increase - together with rising United States output - has prevented prices from regaining the highs of January even as most Opec members continue to curb production.
Oil climbed as geopolitical risk resurfaced, with a halt at Libya's biggest crude field sparking speculation that supply will tighten and help reduce a global glut.
Sharara was producing again after a one-day halt, according to a person with knowledge of the matter, who asked not to be identified because they aren't authorized to speak to news media.
West Texas Intermediate for April delivery rose as much as 72 cents to $61.97 a barrel on the New York Mercantile Exchange and traded at $61.34 as of 12:25 p.m. London time. The contract fell 3.6% last week, the first weekly decline in three weeks.
Brent for May settlement advanced 34 cents to US$64.71 a barrel on the London-based ICE Futures Europe Exchange. Front-month futures slipped 4.4% last week. The global benchmark traded at a US$3.24 premium to May WTI.
Oil shipments from Libya jumped to 1.19 million barrels a day last month, the highest since Bloomberg began tracking tankers from the country in July 2014.
Libya has struggled to boost oil production amid the lingering effects of civil strife that erupted earlier in the decade.
At the same time, investors are also focusing on the USA, where explorers have boosted the number of rigs drilling for crude to 800 for the first time in nearly three years, according to Baker Hughes data released Friday.
Drillers have been accelerating exploration in an almost-unbroken streak since the beginning of November, vaulting American crude output to a record of more than 10 million barrels a day.
CERAWeek by IHS Markit, the largest gathering of energy executives and officials in the Americas, begins on Monday, when OPEC Secretary-General Mohammad Barkindo will dine with shale executives in Houston.