Being the 12 largest global oil exporter with 1.6 million barrels produced daily before the conflict, Brent was cut down $2.30 to 106.32, while US crude went up 35 cents to 82.61 a barrel after dropping to 81.13 earlier.
“Brent is taking more of a battering but that’s only to be expected. The divergence is just another graphic example of dislocation between WTI and Brent. Given that the Brent price was below 100 dollars before the uprising started in March, prices have some way to go, but ii won’t come down as quickly”, said a trader at Jefferies Bache, Christopher Bellew.
Brokers say that we could see volatility in the oil market if a situation like that in Iraq starts, when President Saddam Hussein’s supporters set fire to oil installations, but more important for the oil price is the world economy.
The six-month civil war in Libya appears to be close to an end and Muammar Gaddafi seems to be defeated. In what way will this affect our fuel? We should better wait and see that listen to rumors.