Libya geopolitical risk upholds global oil prices . . . . . . . . . . . . Oil futures held gains early Wednesday, boosted by renewed tension over global crude outlook as deadly violence took a heavy toll on Libya, one of the world`s top oil-producing countries. The Libyan parliament have been suspended and nearly 80 people have died in less than a week in battles initiated by armed men claiming allegiance to a newly formed movement called the Libyan National Army (LNA), headed by a retired general named Khalifa Heftar, whose seeking the handover of power to purge the north African country of Islamist militants. On Sunday, the LNA stormed parliament demanding its suspension, an attack that forced the country`s fragile government to make a last-minute announcement on Tuesday -- elections will be held in just over a month. The deadly assaults in the capital Tripoli looked to be one the worst since the 2011 revolution that ousted longtime leader Moammar Gadhafi. The Libyan crude exports are at stake again, which has been proving supportive to global oil prices over the past few days. In Ukraine, the geopolitical risk is also offering support to oil benchmarks, as pro-Russian militants sent the eastern part of the country into chaos. Russia, the top gas-exporting nation to Europe, has sour relations with the West over the Ukraine crisis, The US and European Union have said they will impose additional sanctions on Russia if it disrupts the upcoming presidential election in Ukraine planned for next Sunday. Meanwhile, traders anticipate another weekly update on the change of crude oil inventories in the United States. As of 02:52 a.m. ET: - West Texas Intermediate for June delivery rose 0.49% to $102.83 a barrel on the New York Mercantile Exchange, after adding 22 cents to settle at $102.33 on Tuesday. - Brent for June delivery rose 0.03% to $109.72 a barrel on the ICE exchange in London, after adding 36 cents to settle at $109.69 on Tuesday. - NYMEX Natural Gas fell 0.55% to $4.527 per million British thermal units, slightly below a one-week high at $4.570 hit Tuesday. The contract hit a six-week low last Thursday. #egyptyard
Posted on: Wed, 21 May 2014 08:52:55 +0000
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