Oil prices were on the rise today as investors were focusing attention on the situation in the Middle East and North Africa.
Omani government has deployed troops to the major port city of Sohar, which has been the scene of mass protests for the past four days after Oman became the latest state in the oil rich region to be hit by unrest.
Meanwhile, violent clashes between the opposition and pro-government forces in Libya appear to be far from over as the country’s long time ruler Muammar Gaddafi is still holding on to capital Tripoli, while much of the country has been captured by rebels.
As a result of the unrest, Libya’s oil production declined by half, forcing Saudi Arabia to hike its own production to keep the prices under control.
Libya has Africa’s largest oil reserves and accounted for about 2% of global production before the protests erupted.
US light, sweet crude for April delivery, which is currently the most active contract on the New York Mercantile Exchange (NYMEX), rose to US$98.24/barrel, while May crude reached US$100/barrel.
April Brent crude last traded at US$113.62/barrel on the ICE Exchange.
BP (LON:BP) and Tullow Oil (LON:TLW) declined marginally, while Shell (LON:RDSB) posted a small gain.
BG Group (LON:BG) lost 1.6% and Cairn Energy (LON:CNE) advanced 1%.
Petrofac (LON:PFC) rallied 3.3%, while fellow engineering company Amec (LON:AMEC) rose marginally.
Heritage Oil (LON:HOIL) led the midcaps, surging 4%.
Salamander Energy (LON:SMDR) followed, tacking on 2.7%.
JKX Oil & Gas (LON:JKX) climbed 1% and Melrose Resources (LON:MRS) posted a small gain, as did Premier Oil (LON:PMO).
Soco International (LON:SIA) declined marginally, as did service company Wood Group (LON:WG).
Cameroon and FSU operating Victoria Oil & Gas (LON:VOG) was among the top risers in the sector, climbing 5.5%.
Oil prices rise amid tensions in Libya, Oman
Last updated: 01:29 02 Mar 2011 AEDT, First published: 02:29 02 Mar 2011 AEDT