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Europe:Oil jumps after allied forces bombard Libya

https://www.chemnet.com   Mar 23,2011 commodityonline
World oil prices climbed after Western forces attacked Gadhafi's militia in the first ever attack on Arab world since US led attacks in Iraq.

Light sweet crude for April delivery advanced above $103 a barrel mark in early Asian trade while London's Brent crude was climbed past $116 mark.

At 12.00 noon Singapore time, New York's main contract, light sweet crude for delivery in April, gained was see trading at $102.95 per barrel and Brent North Sea crude for May was at $116.07 a barrel.

Analysts said crude exports from Africa's largest crude reserves holder Libya was completely halted after the attacks and the situation will have an immediate impact on Brent crude prices as Europe accounts for major chunk of Libya's crude exports.

Oil has jumped by more than $2, sending Brent to $US116 after Western forces launched a military campaign against Libya, raising the stakes in a civil war that has nearly paralysed crude exports from the North African nation.

Libya was producing 1.69 million barrels a day before the unrest and about 1.2 million barrels were exported, mostly to Europe. Other major customers are China and the United States.

So far, the US, Britain and France have formed the UN backed anti Gadhafi force but more nations are expected to join the forces if Gadhafi failed to act accordingly, analysts added.

However, unlike, Egypt's Mubarak and Tunisia's Ben Ali, Gadhafi is reported to have said that he will fight to the death, indicating a fierce battle that may boost oil prices considerably.

Meanwhile, other troubled nations in west Asia includes Bahrain and Yemen added to concerns as protests are mounting in the region, threatening further uprising in neighboring areas.

Bahrain Petroleum Co. employees went on strike last week in response to a police crackdown on anti-government demonstrations, while Yemen declared a state of emergency.

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