Oil prices rise near $117 as Georgia conflict halts exports

LONDON (AFP) – Crude prices rose on Monday, nearing 117 dollars a barrel, after oil exports normally carried out via Georgian ports were halted over the weekend owing to an escalation in fighting between Georgia and Russia.

New York’s main contract, light sweet crude for September delivery gained 1.50 dollars to 116.70 dollars a barrel.


Brent North Sea crude for September delivery advanced 1.79 dollars to 115.12 dollars per barrel.

The head of Azerbaijan’s state oil company had said on Saturday that exports had been halted via two Georgian ports owing to the fighting.

That announcement came shortly after Georgian Prime Minister Lado Gurgenidze said that Russian warplanes had staged a raid near the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, the world’s second longest.

Georgia does not produce oil but the country is a key transit point for crude and gas exports from Azerbaijan to markets in the West.

AFP