Oil tops $102 on the NYMEX, keeps gaining on Middle East tensions

By Phaedra Friend Troy

Light sweet crude oil rose above $102 a barrel on the New York Mercantile Exchange Wednesday for the first time in more than two years.

A reported air strike near a major oil terminal in Libya has pushed the price of oil higher on the threat of even more reduced production in the market.

In intra-day trading Wednesday, West Texas Intermediate crude jumped more than $2 to trade at a high of $102.2 a barrel. In London, the price of Brent crude rose to nearly $117 a barrel.

Despite a gain in stocks at Cushing, which helped to drop the price briefly below $99 a barrel, tensions in the Middle East and North Africa have fed fears about diminished oil supplies, sparking oil buys across global markets.

Chairman of Libya’s National Oil Corporation Shokri Ghanem told Reuters that should the unrest in Libya continue, it could force oil prices to climb to $130 a barrel. 

Various operators have shut-in production in Libya, as well as evacuated international staff because of the violence in the OPEC-member nation.

Additionally, civil unrest has spread to other major oil-producing nations, including Iran, Algeria, Saudi Arabia, Yemen and Iraq.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs