Crude oil surpasses US$104 as crisis in Libya intensifies

08-Mar-11

Oil prices spiked past US$104 a barrel to end last week at a 29-month high, as fighting in Libya intensified and on news of addition of 200,000 jobs in February in the United States. Even as the job report reflects positive news for the economy, it also suggests that more people are driving to work at a time when world oil supplies are under pressure because of unrest in Libya and the Middle East. Saudi Arabia has increased production to make up for the loss of Libyan crude, but a long struggle could exert significant pressure on world supplies.