Production at Libya's Brega oil complex has dropped by almost 90 percent amid the country's crisis because many employees have fled and few ships are coming to offload the product.
SYDNEY – Oil futures again broke through the $100 a barrel mark in electronic trading on Wednesday, as violence in Libya and the surrounding region sparked fears that unrest will spread.
Benchmark Nymex light sweet crude oil futures rose 72 cents or 0.7% to $100.25 a barrel.
Oil prices climbed nearly 3% in regular New York trading on Tuesday amid ongoing political uncertainty in the Middle East and North Africa.
“As Libyan oil supplies and exports remain severely disrupted, market sentiment remains on a precarious edge, as fears of contagion remain widespread,” analysts at Barclays Capital said.
Protests in Oman and fears about the exit of foreign oil-producers, as well as a recent reported attack on a major Iraqi refinery, are also expected to worry investors.
“While Oman is not a large oil producer, the involvement of foreign oil companies is substantial and on the rise. Any severe outbreak of violence may lead to a similar exit of the international oil companies as witnessed in Libya, thereby threatening the long-term production profile of Oman,” analysts at Barclays Capital said.
“Iraq is also facing increasing domestic violence, with the attack on the Baiji refinery likely to curtail domestic product supplies for some time,” they added.
The analysts also pointed to potential longer-term implications for the region from the recent turmoil.
“We see the unrest in this region as being particularly negative for foreign investment in the longer term, which could effectively result in the loss of incremental volumes and a slowdown in exploration drilling,” the Barclays Capital analysts said.
Read More
http://www.marketwatch.com/story/oil-moves-back-above-100-a-barrel-2011-03-01
Benchmark Nymex light sweet crude oil futures rose 72 cents or 0.7% to $100.25 a barrel.
Oil prices climbed nearly 3% in regular New York trading on Tuesday amid ongoing political uncertainty in the Middle East and North Africa.
“As Libyan oil supplies and exports remain severely disrupted, market sentiment remains on a precarious edge, as fears of contagion remain widespread,” analysts at Barclays Capital said.
Protests in Oman and fears about the exit of foreign oil-producers, as well as a recent reported attack on a major Iraqi refinery, are also expected to worry investors.
“While Oman is not a large oil producer, the involvement of foreign oil companies is substantial and on the rise. Any severe outbreak of violence may lead to a similar exit of the international oil companies as witnessed in Libya, thereby threatening the long-term production profile of Oman,” analysts at Barclays Capital said.
“Iraq is also facing increasing domestic violence, with the attack on the Baiji refinery likely to curtail domestic product supplies for some time,” they added.
The analysts also pointed to potential longer-term implications for the region from the recent turmoil.
“We see the unrest in this region as being particularly negative for foreign investment in the longer term, which could effectively result in the loss of incremental volumes and a slowdown in exploration drilling,” the Barclays Capital analysts said.
Read More
http://www.marketwatch.com/story/oil-moves-back-above-100-a-barrel-2011-03-01
