Brent crude hovers below US$108

23-Feb-11

Brent crude traded at US$107.6 supported by concerns that the revolt in Libya is likely to spread in more nations of the Middle East, likely to cross US$110 if the turmoil in the Middle East continues, as per Bloomberg. This could risk the US economy slipping back below the 3% level that many economists have forecast for the year. Businesses that use petrochemicals and oil face similar problems. At companies where margins are already thin, high oil prices will cut profits and may even cause losses. Prices on Nymex rose to US$94.4, up more than eight dollars from close of trading on Friday. Since hitting those levels, the price has fallen back to near US$91.2.