Oil prices jumped today with Brent reaching US$106/barrel, while US crude futures added more than US$5 as the crisis in Libya worsened with the unrest turning into an armed conflict to further destabilise the oil rich region.
The opposition is trying to overthrow the country’s long-time ruler Muammar Gaddafi, who has reportedly ordered air strikes on protesters after the wave of mass protests reached the capital Tripoli.
Libya is Africa’s third largest producer of crude oil and the world’s twelfth largest exporter.
According to the International Energy Agency, 50,000 barrels of Libya’s daily oil output has been shut down as a result of the unrest.
US light, sweet crude for April delivery, which is currently the most active contract on the New York Mercantile Exchange (NYMEX), reached US$95/barrel, while May crude advanced to US$96.63/barrel.
April Brent crude last traded at US$106.45/barrel on the ICE Exchange.
Supermajors BP (LON:BP) and Shell (LON:RDSB) posted small losses.
BG Group (LON:BG) and Cairn Energy (LON:CNE) lost about 1%.
Tullow Oil (LON:TLW) rose marginally.
Heritage Oil (LON:HOIL) was the heaviest faller among the midcaps with a 2.5% loss.
JKX Oil & Gas (LON:JKX) and Melrose Resources (LON:MRS) dropped 1.5%.
Premier Oil (LON:PMO) and Soco International (LON:SIA) declined marginally, as did service company Wood Group (LON:WG).
Salamander Energy (LON:SMDR) did better, posting a small gain.