Oil prices jump as West launches air strikes in Libya

World oil prices rallied yesterday after Western air strikes were launched on key crude exporter Libya over the weekend. New York’s main contract, light sweet crude for delivery in April, added $1.75 to $102.82 a barrel. In London morning trade, Brent...

World oil prices rallied yesterday after Western air strikes were launched on key crude exporter Libya over the weekend. New York’s main contract, light sweet crude for delivery in April, added $1.75 to $102.82 a barrel. In London morning trade, Brent North Sea crude for May won $1.43 to $115.36 per barrel.

“Brent oil prices rose following military intervention in Libya over the weekend,” said analyst Conall Mac Coille at Davy stockbrokers in Dublin. “The increase in oil prices has fed through to other commodities, particularly metals.”

“More oil installations could be damaged due to collateral damage and internal sabotage ,” said Victor Shum, senior principal for Purvin and Gertz international energy consultants in Singapore. “The unrest in the Middle East and North African region may spread to other (parts of the) region, and hence the contagion effect on oil prices remain. Oil supply disruption is going to support prices in its triple digits.”

Before the unrest, Libya was producing 1.69 million barrels a day.

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