Oil market remains unstable
Oil climbed to the highest in 30 months in London as Libya’s violent uprising reduced supplies from Africa’s third-biggest producer.
Brent rose above $119 a barrel on estimates the revolt caused Libya to lose as much as two-thirds of its oil output. Futures in New York gained for a sixth day, after climbing above $100 a barrel. The cuts create “significant upside risk” to prices and any further disruptions could create severe shortages in global oil markets, Goldman Sachs Group Inc. said.
“When geopolitics in the Middle East are at play in the oil markets, all conventional bets on the direction of oil prices based on supply and demand fundamentals are off,” said Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA in London.
Brent oil for April settlement rose as much as $8.54, or 7.7 percent, to $119.79 a barrel on the ICE Futures Europe exchange, the highest since Aug. 21, 2008. The contract traded at $115.15 at 1:13 p.m. London time. It has rallied 12 percent this week.