WSJ: Crude Above $100 a Barrel as Libya Worries Persist
By REZA AMANAT
LONDON—Crude futures remained firmly above $100 a barrel Friday as export-disrupting unrest in Libya continued to feed fears of a supply shortage in Europe, where most of the North African country's barrels are sent.
The front-month April Brent contract on London's ICE futures exchange was up 71 cents at $115.50 a barrel, while the front-month April contract on the New York Mercantile Exchange was trading higher 82 cents at $102.73 a barrel.
"The focus remains the Middle East, and with violent clashes intensifying in the eastern oil-producing regions of Libya, there is no reason for the market to forsake its long position on oil, as such we are likely to continue seeing prices trend above $100," said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas.
The head of the International Energy Agency said Thursday that the unrest was starting to affect Europe's oil supplies, but noted that no member state had requested the authorization to release strategic oil stocks.
The upheavals in the Middle East and North Africa have charted a 22% rise in benchmark Brent futures since Feb. 15, when the unrest in Libya began. The benchmark is used to price the majority of the world's physical crude, including oil from North Africa and the Middle East.
Although the U.S. benchmark Nymex light, sweet crude has also climbed during that period, its gains have lagged behind Brent as inventories at its delivery point in Cushing, Okla., have swelled to record highs.
U.S. employment data due Friday morning could compete for influence in steering oil prices.
