(Bloomberg) — Oil rose as the shutdown of Libya’s biggest oil field strains an already under-supplied market, overshadowing signals that China’s drastic pandemic lockdowns are weighing on economic growth.

Futures closed at $113 per barrel, while West Texas Intermediate oil was just below $108. Global crude markets face further supply disruptions after demonstrations against Libyan Prime Minister Abdul Hamid Dbeibah shut down Sharara, the country’s biggest oil field. Protesters also forced two of the North African nation’s ports to halt loadings with output halted at the El Feel field. 

Prices were falling earlier because of bearish Chinese economic data. The world’s second-largest economy reported the biggest decline in consumer spending and its worst unemployment rate since the pandemic emerged, compounding threats to global growth.

Oil rallied above $100 this year as Russia’s war in Ukraine disrupted an already-tight market and prompted some traders to shun Russian crude. To combat inflationary pressures, the U.S. along with its allies accumulated millions of barrels worth of strategic reserves. Global supplies are still tight, with the European Union contemplating banning Russian crude oil and OPEC+ firmly opposing any accelerated production rises.

One indicator in the oil markets suggests that bullish sentiment may be rising. Brent’s so-called prompt spread, the difference between its two nearest contracts, surged to $1.15, up from 21 cents a week ago. 

Any “embargo decision by the EU would be a catalyst for even higher oil prices,” said Pavel Molchanov, an analyst at Raymond James & Associates Inc. “Realistically, it would not be viable to replace” all of the crude that would be disrupted from a European Union ban on Russian crude.

Russia’s Deputy Prime Minister Alexander Novak said last week that if more nations banned Russian energy flows, prices may “significantly exceed” historic highs. The U.S. and U.K. have moved to bar crude from the country in retaliation over Moscow’s invasion of Ukraine.

In a weekend phone call, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman gave a “positive assessment” of their efforts to stabilize the oil market, suggesting that no change in production policy is likely. These two countries are the leaders of the alliance which consists of the Organization of Petroleum Exporting Countries (OPEC+) and its members.

Oil’s surge this year has been part of a wider advance in energy commodities that’s seen prices extend gains even as the outlook for global economic growth dims. On Monday, U.S. prices hit the highest level in more than 13 years as robust demand tests drillers’ ability to expand supplies.   

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