Libya shutdown sends oil to $US100
Western oil companies are suspending operations as violent conflict spreads across one of Europe's largest suppliers.
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Oil exports out of Libya, one of the biggest suppliers to Europe, are rapidly running down, sending world prices to their highest in more than two years.
In New York, light, sweet crude futures for April delivery briefly hit $US100 a barrel for the first time since October 2008.
That was when crude prices tumbled from record highs and the US economic recession began to set in.
Several oil companies have suspended or shut down their operations as street violence continued to rage across the country.
Armed militia supporting Muammar Gaddhafi have continued to fire on demonstrators in Tripoli, while most of the country is under the control of anti-government forces.
Germany's Wintershall said it stopped oil production in Libya, where it produces about 100,000 barrels a day. Spain's Repsol said it was suspending operations at the Sharara oil field, which supplies more than 200,000 barrels a day.
Other companies, including Italy's Eni, France's Total and Norway's Statoil said some operations were being suspended.
The total impact on crude production in the country, which exports an estimated 1.3 million barrels a day, was unclear. However, Barclays Capital estimates the turmoil has affected one million barrels a day of production.
Libya is the first major oil producer to see its production disrupted by the mass protests in the region that have swept out entrenched rulers in Tunisia and Egypt.
Libya is the eighth-largest oil producer in Opec and has the largest crude reserves in Africa, according to the International Energy Agency.
Nevil Gibson
Thu, 24 Feb 2011
Thu, 24 Feb 2011
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Libya shutdown sends oil to $US100
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