North African Turmoil Could Rocket Crude to $220 If the turmoil paralyzing parts of the Middle East and North Africa brings oil production in Libya and Algeria to a standstill, it could cause crude oil to explode to $220 a barrel, derailing the global economic recovery. According to a new report from Tokyo-based Nomura, a simultaneous production halt from embattled Libya and neighboring Algeria would reduce OPEC spare capacity to 2.1 million barrels a day and may cause crude to spike from about $97 a barrel today to $220 a barrel.The markets have been pricing in the possibility the crisis in Libya will break out into an all-out civil war as longtime Libyan leader Muammar al-Qaddafi has refused to step down. In a televised speech on Tuesday, he said, “I will fight to the last drop of my blood.” Citing a source close to the al-Qaddafi regime, Time Magazine reported late Tuesday the leader has ordered security services to start sabotaging oil facilities. The forces plan to blow up several oil pipelines, cutting off flow to Mediterranean ports, the report said.Wednesday, February 23, 2011
North African Turmoil Could Rocket Crude to $220 If the turmoil paralyzing parts of the Middle East and North Africa brings oil production in Libya and Algeria to a standstill, it could cause crude oil to explode to $220 a barrel, derailing the global economic recovery. According to a new report from Tokyo-based Nomura, a simultaneous production halt from embattled Libya and neighboring Algeria would reduce OPEC spare capacity to 2.1 million barrels a day and may cause crude to spike from about $97 a barrel today to $220 a barrel.The markets have been pricing in the possibility the crisis in Libya will break out into an all-out civil war as longtime Libyan leader Muammar al-Qaddafi has refused to step down. In a televised speech on Tuesday, he said, “I will fight to the last drop of my blood.” Citing a source close to the al-Qaddafi regime, Time Magazine reported late Tuesday the leader has ordered security services to start sabotaging oil facilities. The forces plan to blow up several oil pipelines, cutting off flow to Mediterranean ports, the report said.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment