World Clock

Monday, 21 February 2011

Escalating Crisis in Libya Sends Oil Price Soaring

Comments from Saif al-Islam Gaddafi, the son of Libya's embattled leader Moammar Gaddafi indicating the country is on the brink of civil war has sent prices of oil soaring today. 

These comments made last night in conjunction with rumours that western oil companies are preparing or have begun to pull employees out of the country have sent oil prices soaring today.

Also reports indicating that around 200 people have been killed in clashes throughout the country has also increased investor uncertainty over potential short term supply disruptions.

WTI Crude Oil soared 6% to $91.42 a barrel on the futures market in New York. While at the same time Brent Crude in London surged 5.3% to reach $108.01 a barrel.

Libya, is the first country in the ongoing crisis in the Middle East and North Africa that is a significant player in the oil markets. As an OPEC member, Libya accounts for around 2% of daily production, has the potential to have a direct impact on the oil markets as investors have realised today. 

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