Oil price jumps by US$2 in wake of Libya uprising
Oil prices have gone up by more than $1 a barrel as violent clashes in Libya and other Middle Eastern countries are fuelling fears of disrupting supplies.
Libya, a member of the oil cartel Opec, exports 1.1m barrels a day. "The oil market could easily jump another $10 in the short term if the violence continues," said David Cohen, director of Asian Economic Forecasting at Asian Economics.
Brent crude for April delivery rose to $104.39 a barrel in early trading, a gain of 1.8%. US crude for March delivery climbed 1.7% to $87.70 a barrel.
On Sunday, the head of the Al-Suwayya tribe in eastern Libya threatened to cut oil exports to western countries within 24 hours unless the authorities put an end to the "oppression of protesters". There are also fears that the unrest in northern Africa and the Middle East, could spread to Saudi Arabia.
Libyan leader Muammar Gaddafi’s son warned the country could descend into civil was as the regime is trying to halt the uprising with force.