Oil rallies on Libyan pipeline blast

Lower output: The Shell Deer Park oil refinery in Texas. The API reports that US inventory dropped last week. — AP

SEOUL: Oil traded above US$59 a barrel as crude production in Libya fell below one million barrels a day after a pipeline explosion on Tuesday.

Futures were little changed in New York after slipping for the first time in more than a week on Wednesday. While the halt at the pipeline that carries crude to Libya’s biggest export terminal will keep output below the cap it agreed to last month, it is said to need about a week for repairs.