Oil prices continued rising as tensions in Libya showed no signs of dying down, driving Brent crude to nearly US$110/barrel.
Violence escalated as the country’s long time ruler Muammar Gaddafi resisted calls to resign from his post and used the military to subdue protesters. Meanwhile, the protest movement has grown stronger and more senior officials have stepped down to support the rebels.
According to Italy’s foreign minister Franco Frattini, the death toll from the Libyan unrest has topped 1,000.
Libya holds Africa’s largest oil reserves and is currently the continent’s third largest crude oil producer.
TIME magazine reported that Gaddafi ordered his security forces to destroy oil pipelines, raising fears of disruptions in oil supplies.
US light, sweet crude for April delivery, currently the most active contract on the New York Mercantile Exchange (NYMEX), reached US$97.02/barrel, while May crude advanced to US$98.51/barrel.
April Brent Crude last traded at US$109.66/barrel on the ICE Exchange.
Supermajors BP (LON:BP) and Shell (LON:RDSB) shed nearly 1%, as did Cairn Energy (LON:CNE).
Tullow Oil (LON:TLW) declined 1.5% and BG Group (LON:BG) held steady.
Amec (LON:AMEC) advanced 2%. Fellow engineering firm Petrofac (LON:PFC) dropped 1.8%.
Midcaps weren’t very active today.
Heritage Oil (LON:HOIL) led the way with a 1.2% climb.
Soco International (LON:SIA) tacked on nearly 1%.
JKX Oil & Gas (LON:JKX) and Salamander Energy (LON:SMDR) posted small losses, as did service company Wood Group (LON:WG).
Melrose Resources (LON:MRS) and Premier Oil (LON:PMO) held steady.