Gadaffi strikes back : Oil prices cross US$100

03-Mar-11

Oil prices have crossed US$100 on reaction to Libyan leader Gaddafi’s strike back. Forces of Gaddafi attacked rebel strongholds in the eastern part of the country, location of several production facilities. The underlying fear is still that the current unrest will spread due east into the Arab Middle East. Benchmark crude for April delivery rose to US$100 on the Nymex, while in London, Brent crude for April delivery rose past US$115 on the ICE Futures exchange. Also supporting oil prices was a report of an unexpected drop in US crude and gasoline supplies. An unexpected dip American Petroleum Institute reported a fall of 1.1 mln barrels in crude inventories last week.