Oil Rises From Two-Year High as Libya Unrest Fans Mideast Supply Concern

Source: Bloomberg

Oil rose from the highest close in more than two years as Libya’s violent uprising threatened to disrupt exports from Africa’s third-biggest supplier and spread to crude-producing nations in the Middle East.

Futures for April delivery advanced as much as 0.7 percent today after Libyan leader Muammar Qaddafi vowed to fight a growing rebellion until his “last drop of blood.” London- traded Brent climbed from the highest settlement since September 2008. The Organization of Petroleum Exporting Countries will boost output if there is a supply shortage, Saudi Arabian Oil Minister Ali al-Naimi said yesterday.

“It’s still the risk that this contagion spreads to Saudi Arabia or Iran,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “OPEC could step in and increase production to offset that if they needed to.”

Crude for April delivery gained as much as 66 cents to $96.08 a barrel in electronic trading on the New York Mercantile Exchange, and was at $95.91 at 4 p.m. in Singapore. The contract yesterday increased $5.71 to $95.42, the highest since October 2008. Futures are up 21 percent from a year ago.



Read more: http://www.bloomberg.com/news/2011-02-22/oil-rises-for-fifth-day-in-new-york-as-libyan-unrest-stokes-supply-concern.html