steveox
Well-Known Member
NEW YORK (AP) — Oil prices around the world should start falling if Libyan rebels succeed in toppling Moammar Gadhafi's regime, though the full effect won't be felt for months.
On Sunday night, rebel forces pushed into Tripoli without meeting much resistance, hours after they overran a major military base that defended the capital. The opposition's leaders said Gadhafi's son and one-time heir apparent, Seif al-Islam, has been arrested.
Independent analyst Andrew Lipow said oil markets will likely respond Monday by sending prices lower in "a sign of relief that conflict has come to the end."
But Lipow said it will take time for the market to erase the hefty price increase that resulted from the suspension of Libyan oil exports since the rebellion began in February.
Libya used to export about 1.5 million barrels of oil per day, almost all of which have been cut off. Although Libyan oil amounted to less than 2 percent of world demand, its loss affected prices because of its high quality and suitability for European refineries.
Analysts estimate that the situation in Libya has increased oil prices by $10 to $20 a barrel.
The European refineries have struggled to make up for the production loss despite an increase from Saudi Arabia. As a result, European markets should see the first and most significant drops in oil prices, Lipow said.
He added that any developments in the ongoing European financial crisis could also move stock markets around the world this week and oil prices along with them.
http://news.yahoo.com/oil-prices-fall-gadhafi-overthrow-221558524.html
Obama wont help Libya! But Bachman would. We need the US Military side with the Rebels. Why not have the Air Force and the Navy to help. Libya cant beat the U.S Its been proved that Reagan beat Gadhafi. Lets free Libya by using Americas military power! And Capture lockerbie bomber Mohmed Ali al-Megrahi and Hold him in gitmo bay.
On Sunday night, rebel forces pushed into Tripoli without meeting much resistance, hours after they overran a major military base that defended the capital. The opposition's leaders said Gadhafi's son and one-time heir apparent, Seif al-Islam, has been arrested.
Independent analyst Andrew Lipow said oil markets will likely respond Monday by sending prices lower in "a sign of relief that conflict has come to the end."
But Lipow said it will take time for the market to erase the hefty price increase that resulted from the suspension of Libyan oil exports since the rebellion began in February.
Libya used to export about 1.5 million barrels of oil per day, almost all of which have been cut off. Although Libyan oil amounted to less than 2 percent of world demand, its loss affected prices because of its high quality and suitability for European refineries.
Analysts estimate that the situation in Libya has increased oil prices by $10 to $20 a barrel.
The European refineries have struggled to make up for the production loss despite an increase from Saudi Arabia. As a result, European markets should see the first and most significant drops in oil prices, Lipow said.
He added that any developments in the ongoing European financial crisis could also move stock markets around the world this week and oil prices along with them.
http://news.yahoo.com/oil-prices-fall-gadhafi-overthrow-221558524.html
Obama wont help Libya! But Bachman would. We need the US Military side with the Rebels. Why not have the Air Force and the Navy to help. Libya cant beat the U.S Its been proved that Reagan beat Gadhafi. Lets free Libya by using Americas military power! And Capture lockerbie bomber Mohmed Ali al-Megrahi and Hold him in gitmo bay.
