U.S. crude oil futures prices jumped more than 1 percent to its highest close in 2-1/2-years as supportive U.S. jobs data reinforced economic growth expectations and as Libya’s conflict and Middle East unrest kept investors wary of threats to supply.
WTI oil prices end Friday’s trading session at $105, which is $4 a barrel higher than the previous week’s closing price and a 30 month high for US Light crude, while analysts forecast high oil prices maybe just around the corner.
Brent oil futures open the week’s trading session near $116 a barrel and oil prices are set to remain bullish astraders and investors eye up the Libyan conflict as international coalition forces conducting air strikes over the country.
Citigroup analyst Daniel Hynes looked at the impact the Japanese earthquake and tsunami is likely to have on commodities.
Attacks raise concern that the unrest will intensify also in North Africa and Middle East territories producing more than a third of the world’s oil.
A rethink about nuclear energy after Japan’s earthquake could boost demand for natural gas, the head of Royal Dutch Shell said on Sunday.
Oil prices slipped on Friday after two days of gains, as Libya declared a ceasefire, easing for the moment the threat of a Western air attack that could escalate the conflict and further damage oil facilities.
Oil prices ended little changed Monday, recovering from earlier losses, as investors grappled with the potential fallout from the Japan earthquake and ongoing political unrest in the Middle East.
China will invest more than USD 6 billion for the development of Iran’s “giant” north and south Azadegan oilfields, Iranian deputy oil minister has said.
Oil prices fell to near $101 a barrel Friday in Asia after a massive earthquake and tsunami struck Japan, triggering knee-jerk flight to safety selling in regional markets.
