Crude futures settle just short of $60, hitting a level not seen since mid-2015

A pipeline blast in Libya and a bullish budget forecast in Saudi Arabia boosted crude prices to levels not seen since mid-2015.

West Texas Intermediate crude settled within a whisker of $60 a barrel, settling Tuesday at $59.97 a barrel in New York, up $1.50 a barrel, or 2.6 percent. A pipeline run by Waha Oil that carries crude to Libya’s biggest export terminal exploded Tuesday, dropping the country’s output by 70,000 to 100,000 barrels a day. Meanwhile, Saudi Arabia is said to expect oil revenue to rise 80 percent by 2023.

The blast is “certainly something of a setback because Libya had been very steadily staying online,” said John Kilduff, a partner at Again Capital, a New Yorkbased hedge fund. “It’s just a re-

minder of the geopolitical risk premium that’s going to haunt this market all of next year.”

At the same time, Saudi Arabia is said to expect its first budget surplus in a decade, according to people with knowledge of the matter. Under a six-year program to balance the budget, officials predict rising prices and expanded output will push income from oil sales to $214 billion from $117.3 billion this year, the people said.

Oil is poised for a fourth straight monthly advance as the Organization of the Petroleum Exporting Countries and its partners including Russia cut output and promise to continue doing so through the end of next year. In the U.S., a rising rig count has slowed. Oil rigs are holding at 747 with no rigs added last week, according to Friday’s Baker Hughes data.

In London, Brent for February settlement climbed $1.77 to end the session at $67.02 a barrel, the highest level since May 2015. The global benchmark crude traded at a premium of $7.05 to WTI.

Retail gasoline prices, meanwhile, rose for the first time in weeks, GasBuddy.com reported. In Houston, the average price of a gallon of gasoline rose a penny over the past week to $2.13. Nationally, the average price also rose a cent a gallon, but to $2.43 a gallon.

Gasoline prices have fallen in recent weeks in the face of rebounding production after Hurricane Harvey shut down about one-quarter of the nation’s refining capacity and the weaker demand that comes as colder weather reduces the number of drivers on the roads. In Houston, prices are down 5 cents a gallon from a month ago; nationally, they’re down 7 cents a gallon over the month.