For the sixth day in a row, oil prices have advanced in New York amid anti-government protests in Libya. Libya is one of Africa’s leading oil producers, and has the biggest stockpile of oil, in that region.
Unrest has led to five oil producing companies to shutdown their operations in Libya, badly affecting production numbers. With production going down in Africa, Opec is being forced to increase its fuel supply, so that prices do not escalate any further.
Crude oil on late Wednesday, crossed the $100 per barrel mark in the US, where as it has eased off a little bit, and is trading above the $98 mark. Initial estimates reveal that the revolt has led to the loss of as much as two-thirds of Libya’s total output.
The concerning news is, that oil prices in London have touched $113 a barrel, which is affecting the monetary situation of most European countries, as most of them still try to battle the ongoing fiscal recession.
According to a report released in the US, a $20 increase in oil prices may cut global gross domestic product growth estimates by one per cent as well. The president of the Asian Development Bank Haruhiko Kuroda warned the global markets, that gains in oil prices must be closely monitored amid the unrest in the Middle East and should be tackled wisely.
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