Brent oil price nears $116, traders eye Libyan conflict

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.

Latest Brent Oil Price

In London, Brent crude oil futures for May 2011 delivery was trading at $115.64 a barrel, 06.00 GMT this morning on the ICE Futures Exchange.

Oil Prices to Remain Elevated

“Oil prices are likely to remain elevated while the situation in the Middle East and North Africa remains volatile. The key remains Saudi Arabia, where the news has at least not been any worse over the past week.” analysts at the National Australian Bank said in a note Monday.

Since the start of the unrest in Libya, Saudi Arabia and other OPEC nations have assured that they are willing to increase their oil output and replace any loss in Libyan supplies.

“I can see uncertainty and fear driving the price of oil higher in the short term. At this stage, it looks like Libya has further to play. Gaddafi still seems very defiant. We’ll see further price spikes and shocks in the oil market this week.” said Matthew Lewis of CMC Markets.