Oil Prices: Fighting in Libya
March 21, 2011 by staff
Oil Prices, Motoring organizations said the fighting in Libya and had pushed up oil prices could jump further to 5 per barrel oil if a plant is beaten. This would result in an increase in pump price of petrol in Britain.
Paul Watters, an AA spokesman said: “Libya has shaken the market and probably will continue to drive the price of oil, but it is a volatile market.
“Some of the increases and will be priced in the market and if it were more stable in Libya, then futures prices would be lower.”
The price of oil has hovered around $ 115 and 114 and barrel, with gasoline prices reaching an average of one-liter 133P Friday.
They said that Libya has already had a punch that oil prices went up to due to unrest.
They said the price also depends on what the Chancellor announced in the budget and if a fuel stabilizer so-called duty is introduced. This is where the duty is reduced if the oil price rises and vice versa, in an attempt to help maintain price stability at a refueling station.
The freeze on fuel taxes is widely expected to be announced in the Budget. This would mean scrapping the 1p per liter increase in fuel tax, which comes into force next month.
Julian Jessop, chief international economist at Capital Economics, said: “The conflict can lead to the destruction of Libya’s oil and natural gas facilities.
“The upward pressure on oil prices so far has been limited by the expectation that the interruption of supplies from Libya only short-lived. But that could change if a more serious injury, accidental or not.
“Libya represents only 2 percent of world oil supply, but the strength of global demand means the market is tight and prolonged loss of Libyan oil could push up prices reaching highs above and 140 seen in 2008. “
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