Oil prices stable as traders track eurozone, Libya
Tuesday, October 25th, 2011 3:00:23 by Ahmed Tariq
Oil prices stable as traders track eurozone, Libya
As investors look to upcoming summits at resolving the European debt crisis, the prices of Oil steadied at the end of last week. The analysts are of the view that the death of Moamer Kadhafi will have very limited effect on the oil and gas markets.
It has been learnt from reliable sources that New York’s main contract, the light sweet crude for delivery in December climbed 24 cents to $ 86.31/ barrel. On the other hand, Brent North Sea crude for December went down 22 cents to $ 109.54 / barrel in the Capital of England midday trade.
Prices were steady as “hopes for the announced broad-based solution to the eurozone sovereign debt crisis have suffered a setback,” said Commerzbank commodities analyst Carsten Fritsch.
“The news of the death of the former Libyan leader Kadhafi and two of his sons did not have any major negative impact on the oil price either, although this increases the chances of a peaceful new beginning for the country which was the third-largest African oil producer before the civil war.”
Libya is the third largest producer of crude in African oil markets a few months back. However, with Civil war taking place in the country, Oil industry suffered a serious setback as production graph went downwards. It is assumed that with the death of former President Moamer Kadhafi and his sons, the oil processing industry will slowly get back on the right track.
Libya was producing around 1400000 barrels per day of mostly high-value light sweet crude before the start of civil war in the region. It is estimated that around 85 per cent of Libya’s total produced oil was shipped to Europe via direct routes. So the break in supply will certainly play its part to a surge in Brent crude.
However, Phillip Futures said in a report: “While North Sea production problems have been supportive to oil prices and Brent in particular, traders and analysts expect the return of Libyan oil exports to continue, unaffected by the death of Libya’s ousted leader Moamer Kadhafi.”
Oil cartel OPEC has said that Libya is expected to produce one million barrels per day within next six months to attain pre-conflict levels by the end of 2012.
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Posted by Ahmed Tariq
on Oct 25 2011. Filed under Europe, Sci-Tech.
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