Libya has declared force majeure on its oil contracts; Oil price up 7%

0
405


Libya has declared force majeure on its oil contracts, Reuters reported Tuesday, citing oil traders. The news follows Libyan leader Col. Moammar Gadhafi’s refusal to step down from his 41-year reign and deteriorating civil conditions in the country.

U.S. crude spiked over 7% Tuesday to $96.48 a barrel as violence swept Libya and traders fretted over the stability of other large oil producing countries in the Middle East.

Libya, a member of OPEC, produces about 1.6 million barrels a day; a sizable amount but just a fraction of the world’s overall 87.5 million barrel-a-day appetite.

LEAVE A REPLY

Please enter your comment!
Please enter your name here