|News||Crude falls below $108 as traders mull over Libya fighting and strong demand|
|Analysis||Crude traded below $108 per barrel today as traders are jittery regarding the political turmoil in the MidEast prevailing, while strong global demand signs validate extending a 30% rally since mid-February.|
Crude today hovers around $108 per barrel recording its highest around $108.41 and lowest around $107.81, while it currently is trading around $107.83 per barrel.
Muammar loyalists yesterday fought Libyan rebels in oil-port Brega, where control of the town has shifted several times since the beginning of the rebellion back in February. Meanwhile, supplies from other oil-rich countries in the MENA region have not been disrupted as analysts expect oil prices to plunge due to protests in the region simmering down.
Crude yesterday traded around $108 per barrel recording its highest around $108.75 and lowest around $107.57 per barrel, closing around $108.28 per barrel. Futures yesterday rose following improvement in US and Chinese figures suggesting robust demand in the two largest energy consumers in the world.
Moreover, higher oil product prices like gasoline, diesel and heating could pressure inflation and that in turn could push central banks to raise interest rates, which could negatively impact economic growth and demand on oil.
As for NYMEX as of 04:44 EST; motor gasoline fell $0.43 recording $315.530 per gallon; heating is trading around $315.740 per gallon declining $0.44; whereas natural gasoline shed $0.19 to record $4.281. In London, Brent futures dropped $0.38 to record $120.600.