Protests were met with violence in the Middle East as the geopolitical events rolled the commodity markets, with spot crude oil rising to a price not seen in the past 2.5 years.
Libya is the first oil exporter to be engulfed in violence as reports of the regime opening fire on protesters to disperse the demonstrations has reached major news outlets. Protests have also been put down by violence in Iran, Bahrain, and Yemen.
Spot crude oil prices spiked in overnight trading to a high of $98.37, finally settling at $96.40 after opening the week at $89.90.
The geopolitical events appear to have added an extra risk premium now that the protests have spread to oil producing nations such as Libya, OPEC's seventh largest producer. Traders will be eyeing further events in the Middle East as the risk of crude oil supply disruptions could spread throughout the region.
Following today's price spike, the $100 price level seems well within reach this week.