NewsCrude hovers above $102 as Libyan battles affect the worldPreviousForecastAnalysisCrude traded above $102 per barrel today as the fighting in Libya continues between protestors and supporters of leader Muammar Qaddafi where the OPEC nation has cut crude output more than previously estimated and thus directly impacting world supply.
Crude today hovers around $101 per barrel recording its highest around $102.91 and lowest around $100.36, while it currently is trading around $101.70 per barrel.
The EIA yesterday reported a drop in inventories by 0.4 million barrels from the previous 346.4 MB opposed to the expected buildup which further supported crude to the upside; gasoline also dropped by 3.6 MB last week above the upper limit.
Crude yesterday traded around $100 per barrel recording its highest around $102.47 and lowest around $99.20 per barrel, closing around $102.41 per barrel. Futures skyrocketed yesterday due to ongoing unrest in Libya and now spreading to Saudi Arabia, the world’s largest crude exporter, which has previously agreed to pump more oil to cover the shortage caused by Libya’s cuts; thus, leading to the sudden boost in oil prices which could eventually threaten global growth.
Moreover, violence and chaos continues overwhelming the Mid-East as Libyan leader Muammar Gaddafi yesterday bombed rebels using warplanes as opposition leaders have appealed for foreign nations to intervene and launch air strikes to stop such attacks. Meanwhile, other countries in the region have currently been affected by the protests sweeping the region including Iraq, Iran, Oman and Saudi Arabia keeping the world on its toes as events unravel.
Nevertheless, crude is trading off its highs now and might be biased south as trades lock on profit as the strain in the market eased slightly over Libya after Venezuelan President Hugo Chavez offered to mediate peace in the violence ripped Libya. The volatility remains high and the easing geopolitical concern might influence traders to lock on profits for now, yet the bias so far remains still to the upside and the volatility might be very high for crude today.
As for NYMEX as of 03:47 EST; motor gasoline fell $0.74 recording $300.700 per gallon; heating is trading around $304.730 per gallon declining $0.08; whereas natural gasoline gained $0.47 to record $3.836. In London, Brent futures shed $0.40 to record $115.890.