Thursday, February 24, 2011

::Libya The Heat, Crude Oil in Asia Translucent Records to USD95/Barel>>

Go Finance Reporting in Singapore - Crude oil prices in Asian spot market increasingly haunted by the violent crisis in Libya so feared could disrupt crude supplies in the Middle East. As a result, the oil price soared to close to USD96 per barrel level.

As quoted by the Associated Press (AP), Wednesday (02/23/2011), price of crude oil for March delivery rose 30 cents to the position of USD95, 72 per barrel or print a record high since October 2008, in electronic trading in New York Mercantile Exchange ( Nymex) noon Singapore time. Meanwhile, in London, Brent crude for April delivery also rose 72 cents to USD106, 5 per barrel on the ICE Futures exchange.

Increasingly heated situation in Libya after Libyan leader Moammar Gadhafi called on its supporters to attack anti-government demonstrators. As a result, nearly approximately 300 people were killed in the uprising, according to a count of human rights NGO in New York.

Libya was recorded as a country that has the largest oil reserves in Africa or occupies the 15th position in world crude oil exporter by 1.2 million barrels per day. Because the Libyan government's repressive actions against the protesters making Western oil companies including Eni and Repsol-YPF to temporarily suspend its production there, and BP has started evacuation of workers.

"A wave of protests in Libya was the first to show a real risk to oil supplies," the report Goldmand Sachs.

Goldman also predicts the price of crude oil will penetrate the level of USD103 per barrel within the next 12 months as a signal that the oil-rich countries in the Gulf are vulnerable to political turmoil.

Crisis in the Middle East and North Africa have been started since last January in Tunisia and Egypt. Then spread to several countries in the region such as Yemen, Bahrain, Iran, Algeria, Morocco, and Jordan.

Some investors and analysts was watching developments in Iran as the second largest OPEC producer. Some analysts worried that the spike in oil prices which continue to occur could fuel inflation, reduce consumer spending and hamper global economic growth.

"If the current situation continues to deteriorate then this has the potential to not only disrupt the energy market but also hinder economic growth in developed and developing countries," said energy analyst Richard Soultanian NUS Consulting.

In other Nymex trading in the contract of March, heating oil rose 0.4 cents to $ 2, 80 per gallon and gasoline rose 2.5 cents to $ 2, 63 per gallon. Natural gas futures rose 2.5 cents to $ 3, 89 per 1,000 cubic feet. (GoFinance)

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