NewsCrude soars above $96 as traders’ eye violence in LibyaPreviousForecastAnalysisCrude traded above $96.0 per barrel today as political tensions in the Middle East have risen, specifically in Libya as protests have turned violent in order to remove Libyan leader Muammar Qaddafi and thereby spreading a wave of pessimism over traders.
Crude today hovers around $97.0 per barrel recording its highest around $98.33 and lowest around $96.14, while it currently is trading around $97.58 per barrel.
Traders are currently worried about crude exports due to political tensions in Libya turning violent as Libyan Leader Muammar Qaddafi struggles to maintain a grip on power in the OPEC nation, while protestors continue calling for his resignation. Fears of crude exports of 1.0 million barrels per day dropping are prevalent between traders, where if effected can have a notable impact on foreign oil companies as they evacuate staff from the country.
Crude yesterday traded around $95.0 per barrel recording its highest around $95.44 and lowest around $89.80 per barrel, closing around $95.34 per barrel. Futures soared yesterday due to fears overwhelming investors in the Middle East, specifically since Yemen and Libya are the eighth largest oil producing countries in OPEC; while Iran is considered the fourth largest crude producer.
Moreover, the jump in energy costs could harm consumer spending as well and hinder the already weak recovery process in developed countries; however, the current political crisis in the Middle East and North Africa in several countries has in fact added $10 to crude prices, which could harm the rest of the world if it is not resolved in the near future.
As for NYMEX as of 03:30 EST; motor gasoline rose $4.27 recording $266.030 per gallon; heating is trading around $283.980 per gallon inclining $4.68; whereas natural gasoline gained $1.88 to record $3.949. In London, Brent futures gained $1.76 to record $107.600.