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Oil rose in the Asian trade today with the New York contract surging past $106 in the afternoon, a new two-year high as turmoil in the Middle East continued to unsettle investors, analysts said.
New York’s main contract, light sweet crude for April delivery, rose $1.76 to $106.18, while Brent North Sea crude for April was up $1.16 at $117.13.
“Oil prices continue to be on the uptrend primarily due to the deepening conflict in Libya, and concerns about the protests spreading to other parts of the Middle East’s oil-producing region,” said Mr Me Victor Shum, a senior principal for international energy consultants Purvin and Gertz.
“Concerns over oil supply disruptions in the Middle East and North Africa continue to drive oil prices,” the Singapore-based energy expert said.
Heavy fighting continued in Libya as forces loyal to leader Muammar Gaddafi battled rebels for control of the country’s key cities and oil ports.
Libya is the fourth biggest oil exporter in Africa after Nigeria, Algeria and Angola, producing around 1.8 million barrels a day, with reserves of 42 billion barrels. Bulk of its oil production is normally exported to Europe, according to the International Energy Agency.
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