Oil prices rose today as fresh violence in crude producer Libya stoked concerns about possible supply disruptions, analysts said.
West Texas Intermediate for February delivery climbed 57 cents to $55.30 a barrel, while Brent North Sea crude for February gained 64 cents to stand at $60.09 in London deals.
Analysts said investors are showing concern as the "armed conflict in Libya is affecting crude oil flows".
Forces loyal to Libya's internationally recognised government on Sunday carried out air strikes against Islamist militia following attacks on the country's crucial Al-Sidra oil export terminal.
The Fajr Libya (Libya Dawn) group has been trying to take Al-Sidra and the nearby Ras Lanuf terminal since Thursday when it killed at least 22 soldiers in a surprise attack by speedboat.
Seven oil storage tanks at Al-Sidra were set on fire as a result of the fighting. Firefighters managed to extinguish four of the fires yesterday, an oil official said.
Since fresh clashes first erupted around the export terminals on December 13, Libya's oil production has dropped to fewer than 350,000 barrels per day compared with 800,000 previously, industry experts say.
Analysts said oil prices will "continue to trade range-bound" with no major fluctuations expected ahead of the New Year holiday.
