Quantcast
Connect with us

Oil soars past $105 on Libya violence

Published

on

LONDON – Brent oil prices soared above $105 per barrel on Monday, striking a fresh two-year peak as deadly violence in Libya fuelled concerns over spreading unrest in the Middle East and north Africa region.

Brent North Sea crude for delivery in April surged to $105.15 per barrel, the highest level since late September 2008, before pulling back slightly to $105.02, up $2.50 from Friday’s closing level.

ADVERTISEMENT

New York’s main contract, light sweet crude for March, known as West Texas Intermediate, jumped to $90.52. It later stood at $90.35, up by a hefty $4.15 from Friday.

Angry Libyan protesters ransacked the state broadcaster and set government buildings ablaze on Monday, as the son of leader Moamer Kadhafi warned the country faces civil war and “rivers of blood”.

With gunfire crackling in the streets of Tripoli, and Human Rights Watch putting the death toll at 233 since Thursday, Saif al-Islam Kadhafi vaguely promised reforms as he condemned the revolt as a foreign plot.

Moamer Kadhafi, 68, the longest-serving leader in the Arab world, remained out of sight.

ADVERTISEMENT

“Brent crude oil hit a new high above $105 a barrel, following news of the strike at a Libyan oil field today, and the fear of oil field disruption looms large,” said analyst Rebecca Seabury at UK energy consultancy Inenco.

OPEC member Libya is Africa’s fourth largest oil producer after Nigeria, Algeria and Angola, boasting production of 1.8 million barrels per day and estimated reserves of 42 billion barrels.

Libya exports most of its oil to European countries, including Italy, Germany, Spain and France.

ADVERTISEMENT

“Violence in Libya is the main driver of the price rise,” added Commerzbank analyst Carsten Fritsch.

“An influential tribal leader has threatened to cease oil shipments to the West within 24 hours if the violence against protesters does not end.”

The market had breached $104 last week on escalating tensions in the key oil-supplying Middle East and North Africa area, following the ousting of presidents in Egypt and Tunisia.

ADVERTISEMENT

Elsewhere on Monday, Bahrain’s Sunni Muslim ruling family came under increased pressure to open in-depth negotiations with the Shiite-led opposition as protesters erected more tents on the capital’s Pearl Square.

Experts warned that oil prices could rocket to record levels beyond $147 per barrel — if the unrest spreads to Saudi Arabia

“The market will be most concerned over the protests spilling into Saudi Arabia. So far we have only seen low key, small scale protests there,” added Seabury.

ADVERTISEMENT

“However, as Saudi Arabia is the world’s largest oil exporter, if the situation escalates this could take oil prices … higher than the $147 a barrel we saw in 2008.”

On Tuesday, the International Energy Forum will meet in Saudi Arabia as the geopolitical tensions and economic recovery drive prices back to levels last seen before the 2008 global financial crisis. The IEF groups the world’s top oil producing and consuming nations.


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

‘The man who sold America’: Mitch McConnell’s mountain of political sins catalogued in devastating new profile

Published

on

Mitch McConnell finally has the power he's longed for since he was a 22-year-old intern for Sen. John Sherman, but his ruthless march to become Senate majority leader has seen him abandon almost all of his stated principles -- and earned him a lot of enemies.

The Kentucky Republican has been unpopular in his home state for years, but this summer has seen his approval rating plunge to 18 percent after MSNBC's Joe Scarborough tarred and feathered him with the nickname "Moscow Mitch," and he's increasingly seen as "the man who sold America," reported Rolling Stone.

Continue Reading

Breaking Banner

Sarah Sanders rages on Fox News that the ‘out-of-control’ media is ‘making stuff up’ about Trump

Published

on

In her new gig as a Fox News contributor, former White House spokesperson Sarah Huckabee Sanders complained to host Sean Hannity that the "out-of-control" media makes "stuff up" about Donald Trump because they hate him for winning in 2016.

Sanders, who once told reporters that "countless" FBI agents had lost confidence in James Comey only to later tell investigators from special counsel Robert Mueller's office that she made it up, complained to the Fox host about the press being untrustworthy.

Continue Reading
 

Breaking Banner

There will be ‘nightmarish’ consequences if ‘buffoon’ Trump starts a war with Iran: Rick Wilson

Published

on

Longtime Republican strategist Rick Wilson is warning about the severe dangers that will come from President Donald Trump getting America into a war with Iran.

In a scathing column written for the Daily Beast, Wilson warns that the president is "entirely unequipped to handle" any serious fight against Iran, which has been accused of launching strikes against Saudi oil production facilities.

"The mullahs know what they’re seeing when they behold Trump: a buffoon and a bluffer who just might be dumb enough to start a war with nightmarish consequences," Wilson writes. "Iran sees an American defense and intelligence apparatus run by toadies and temporary/acting/provisional/until-the-next-tweet nonentities whose tenures depend not on strategic insight or depth of knowledge, but on their ability to abase themselves before the Dear Leader."

Continue Reading
 
 
Help Raw Story Uncover Injustice. Join Raw Story Investigates for $1. Go ad-free.
close-image