Isra-Mart srl:Libyan unrest forces oil price higher still

www.isra-mart.com

Isra-Mart srl news:

Oil prices hit their highest level since September 2008 this morning, rising by more than a $1 (62p) in early trading to more than $104 a barrel as fears mounted that violent clashes across the Middle East could disrupt supplies.

The price of a barrel of Brent Crude for April delivery rose 1.8 per cent to $104.39, while the price of US crude for March delivery jumped 1.7 per cent to $87.70 a barrel.

The price spike followed continued violent unrest in Libya, a member of OPEC that exports about 1.1 million barrels of oil a day. The uprising against the regime of Libyan leader Muammar Gaddafi has reportedly now spread to the capital Tripoli, prompting a broadcast last night in which Gaddafi's son warned that the country could tip into civil war.

The latest developments came as protests continued in a number of other key oil-producing countries, including Bahrain and Iran, while speculation mounted that unrest could spread to Saudi Arabia.

Some analysts have warned that prices are likely to rise further over the next few weeks if the violence continues and supplies are disrupted.

The steady rise in the price of oil since last summer is leading to higher fuel prices around the world, with China this week hiking gasoline and diesel prices for the first time this year as a result of climbing global prices.

The continued increase in prices will further fuel fears that an oil price that stays consistently above $100 a barrel could derail the fragile global economic recovery.

However, it is also expected to strengthen the investment case for many clean technologies, with British energy and climate change secretary Chris Huhne arguing only last week that the country's low-carbon transition plans will deliver financial savings for households and businesses compared to business as usual once oil prices rise above $100 a barrel.