Oil Ends Above 104 USD on Libya Violence

U.S. crude oil rose on Friday and settled above 104 U.S. dollars a barrel as continuing violence in Libya fueled uncertainty in the oil-rich North Africa and Middle East.

In Libya clashes broke out near the important oil terminal of Ras Lanuf, which caused traders' anxiety about extended supply disruptions.

The International Energy Agency said on Friday the latest information suggested around 1.0 million barrels per day out of a prevailing 1.6 million barrels per day of crude production in Libya has been shuttered. And Libyan ports, which loaded 1.337 million barrels per day of crude in 2010, are operating at reduced rates because of poor weather at the end of February and ongoing unrest. It is estimated that 500,000 to 600,000 million barrels per day of crude were lifted from Libyan ports last week.

Furthermore, protests in Yemen, Oman and Bahrain all helped fuel uncertainty in this region. The situation in the largest oil producer Saudi Arabia stayed the world focus.

Meanwhile, the U.S. Labor Department said the economy added 192, 000 jobs last month and the unemployment rate dropped to a two- year low of 8.9 percent, indicating U.S. economy is picking up momentum.

On the one hand, oil supply was under pressure because of Libyan unrest, on the other hand oil demand tended to rise and the tightening supply-demand relation lifted oil prices.

Light, sweet crude for April delivery rose 2.51 dollars, or 2.46 percent to settle at 104.42 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for April delivery gained 1.18 dollars, or 1.03 percent to settle at 115.97 dollars a barrel.