Tuesday, April 19, 2011

Libyan War triggered the increase in world oil prices

Libyan War feared could affect crude oil prices reaching the highest level, that is $ 140 per barrel as it was in 2008. On Monday, March 21, 2011, oil prices exceeded $ 103 per barrel. Oil prices shot after Libyan leader Moammar Gaddafi vowed would be a "long war" when the allied military attacks on countries that joined in the OPEC. Coalition of the United States, France, Britain and other countries with a bomb attack by tanks and air strikes. Gaddafi said he would not resign and promised to continue the attack on the fort east of Benghazi. The fighting that occurred over the last month is feared to stop crude oil production by 1.6 million barrels per day.

Investors are now worried about intervention from the international community to expand the conflict and hamper Libya's oil production from the previous estimate."The regime in Tripoli showed no signs of surrender. In a prolonged loss of Libyan oil to push prices up to the highest level to above U.S. $ 140 that occurred in 2008," Capital Economics wrote the report.

Gaddafi also warned the west not going to get Libyan oil, and declared his forces could sabotage crude oil. "Scorched earth response from Gaddafi to cause disruption of the voyages in the Mediterranean," said the consultant of The Schork Report. In the afternoon, the price of crude oil for April delivery rose U.S. $ 2.12 to U.S. $ 103.19/barrels on the New York Mercantile Exchange trading after being down 35 cents on Friday that fester in the U.S. $ 101.7/barrels.

With the rising stock market last Monday, as the optimistic attitude of Japan to improve the condition of radiation that occurred at Fukushima nuclear power plant, analysts said the demand for energy in this country the third largest economy will decline and stay on top limit on the price of oil. "Japan's Nuclear Disaster is likely to impact a very long time, meaning that Japan's economic recovery may be slow and annoying," said Edward Meir at MF Global in New York. He added that this situation will continue to drag energy prices in world markets.