Oil jumps to $105

Agencies Singapore | Updated on March 10, 2011

Crude prices rose in the Asian trade today on continued investor concerns that the unrest in Libya could spread to the oil-rich West Asia.

New York’s main contract, light sweet crude for delivery in April, gained 44 cents to $104.82 per barrel. Brent North Sea crude for April delivery rose 56 cents to $116.50.

“It is the fear of the spread of turmoil to other Middle Eastern countries that is fuelling the further increase in prices,” said Ms Ong Yi Ling, investment analyst for Phillip Futures in Singapore.

She said there was enough supply from the Organisation of Petroleum Exporting Countries and there was no need for the oil cartel to hold an emergency meeting before its scheduled session in June.

Oil prices have breached the psychological level of $100 a barrel on fears the unrest that has already toppled the leaders of Tunisia and Egypt will disrupt supplies.

The soaring oil prices have sparked fears of higher inflation that could dent growth as the global economy firms up its recovery from the 2008-2009 recession.

Published on March 10, 2011

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