Oil jumped to the highest in more than two years as violence intensified in Libya, stoking concern crude supplies will be disrupted as violence escalates around the Middle East and North Africa.
New York futures for April delivery rose as much as 9.8 percent from the close on Feb. 18, while London-traded Brent surged to the highest since September 2008, as soldiers deserted Libyan leader Muammar Qaddafi’s government and diplomats resigned. Brent may trade between $105 and $110 a barrel in coming weeks if uncertainty continues, Goldman Sachs Inc. said.
“Oil is being bought on the risk that this contagion will spread through the Middle East,” Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney, said by telephone today. “This effect is a knee-jerk reaction to the fact that this could spread.”
Crude for April delivery rose as high as $98.48 and was at $97 a barrel in electronic trading on the New York Mercantile Exchange at 1:24 p.m. Singapore time. It settled at $89.71 on Feb. 18. Floor trading was closed yesterday for the Presidents Day holiday and electronic trades are booked into today’s for settlement purposes. ...
via Oil Jumps to Highest in Two Years as Libyan Unrest Stokes Supply Concern - Bloomberg.