Oil hits new high over Libya revolution

Source: Press TV
http://www.presstv.ir/detail/166755.html

The revolution in Libya and concerns over supply disruptions in the country have pushed crude prices to a two-year high of over 100 dollars a barrel.

Brent crude rose above $111 per barrel on Wednesday, while light, sweet crude for April delivery briefly touched $100 a barrel on the New York Mercantile Exchange.

The price hike comes as the Libyan government has lost control to pro-democracy protesters in many cities in the east, where much of its oil producing capacity and port operations lie.

The Libyan crisis is threatening the livelihood of foreign companies with vested interests in the North African nation.

Foreign oil companies, namely ENI of Italy, Spain's Repsol, French energy giant Total, Norwegian Statoil and the oil subsidiary of Germany's chemical group BASF, have halted much of their energy production in Libya and moved personnel out of the country.

Libya has proven oil reserves of 44 billion barrels, the largest in Africa, according to the International Energy Agency and exports most of its crude and gas production to Europe.

But Libyan ruler Muammar Gaddafi said in a defiant speech on Tuesday that he would not step down and threatened tougher action against protesters.

This has raised concerns that long-lasting supply disruptions or even permanent damage would happen to the OPEC member's oil industry.