Fears about the supply of crude oil continue to drive prices higher as political unrest sweeps across the Middle East and North Africa. Prices of brent crude oil was trading at US$107.08 a barrel this morning, after hitting two-and-a-half year highs yesterday. Brent crude has risen around 12.5pc so far this year. At least three companies - Repsol, Eni and BASF's Wintershall – have halted operations in Libya as violence escalates in the Gulf kingdom. There are also reports that oil workers in Libya are striking. Saudi Arabia has said it will pump more oil, but only when needed. International Energy Agency (IEA) executive director Nobuo Tanaka said that oil prices above $100 per barrel for the rest of the year could tip the global economy back into a repeat of the 2008 economic crisis. Airlines have also weighed in on the issue, stating that the surges in oil prices will create very challenging conditions for them. "Oil is a big problem because it could change completely the picture,” said Giovanni Bisignani, head of the International Air Transport Association, an organisation that represents some 230 airlines. Libya's unrest has also affected natural gas supplies, with supplies to Italy on the Greenstream pipeline suspended.
Wednesday, February 23, 2011
Middle East politics pushes oil prices up
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