Crude prices jumped by over 1 percent toward $79 a barrel on Tuesday due to rising supply deficit, amid strikes by workers in Norway and Libya's statement its output more than halved in recent months.
September Brent crude futures, the global benchmark, soared 1.2 percent, to $79.03 per barrel. They earlier touched an intraday peak of $79.29. Brent surged 1.2 percent overnight. U.S. light crude futures climbed 0.5 percent, to $74.20.
Norwegian workers on offshore oil and gas rigs came out on strike on Tuesday after denying a proposed salary agreement, leading to the shutdown of one Shell-operated oilfield.
Libya’s national crude output dropped to 527,000 barrels per day (bpd) from a peak of 1.28 million bpd in February after recent oil port closures.
The U.S. says it plans to reduce oil exports from Iran, the world’s fifth-largest exporter, to zero by November, which would force other major producers to increase production.