Go Finance Reporting in NEW YORK - Brent crude prices back to record the newest at the level of USD120 per barrel for the first time since August 22, 2008 because of Libya crisis.
As quoted by AFP, the price of light sweet crude for May delivery, closed at USD108, 47 per barrel, up 53 cents compared to last weekend. In London, the price of Brent North Sea crude oil for May delivery jumped $ 2, 36 to settle at USD121, 06, having previously also had touch the level of USD121, 29 before the trade is completed.
The market continues to focus on the fighting that continues to occur in Libya between rebels and forces loyal to Moamer Kadhafi. Before the crisis, Libya to export 1.3 million barrels per day of crude, more than 1.5 percent of global demand, most of its oil exports to Europe. Exports also have been shrinking due to the crisis.
It makes Brent crude oil futures, which is a benchmark in Europe become more sensitive to the situation in Libya than in the U.S. commodity market, which now is being the excess crude oil reserves. "The longer the fighting was going on, the market realized supplies diminished," said Matt Smith of Summit Energy.
In addition, another riot at one of the Arab countries, Yemen and Bahrain also contributed to rising oil prices. "Conditions in Yemen dangerous because these countries have close contact with Saudi Arabia, the largest oil producer in OPEC cartel," he said.
"What happened in Bahrain has begun to control, but any unrest could push prices to even higher," he added.
While the fourth-largest oil producer in Africa, Gabon strikes by employees of the oil sector, so that has stopped almost all production of oil.
Gabon oil daily output generally ranges from 220,000 to 240,000 barrels. "It's not a lot of oil but given the current situation we are not able to mute it. Today each barrel of crude oil becomes very important," he said. (GoFinance)
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