FXstreet.com (Barcelona) - Crude oil has returned towards $102.00 despite dropping off overnight highs earlier on rumors of a peace deal in Libya proposed by Venezuelan President and long-time Qaddafi supporter Hugo Chavez. The front-month contract currently trades at $101.88 a barrel where it is about $1.50 above the day´s minimum of $100.37.
Oil futures surged once again yesterday as fighting escalated in key cities held by the opposition, including Berga where there is an important oil-refinery. Traders are now waiting to hear the details of Chavez´ proposed peace plan which is presumably being mulled over by both Qaddafi and the Arab League´s SG Amr Moussa.
Uncertainty remains the main driver of concern, with analysts fearing the spread of unrest to larger oil-producers like Algeria and Saudi Arabia, both of which have remained relatively insulated from recent political protests.
