Brent crude oil rose to nearly $110 a barrel in Asian trade this morning before slipping slightly, underpinned by the crisis in oil-rich Libya after rebels overran the compound of Moamer Gaddafi.
Brent has steadily risen in the past two days after initial euphoria that Libyan oil production would return to pre-revolt levels evaporated as it was evident the country's facilities will take some time to get back online.
In late Asian trade, Brent was down nine cents to $109.22, but analysts said the general trajectory is for prices to trend higher. US crude eased 26 cents to $85.18 a barrel.
Brent is more affected than US crude by the situation in Libya as oil from the North Sea as well as from Libya serves the European markets. Around 85% of Libyan oil output was exported to Europe until the revolt disrupted the country's production six months ago.
Europe's refiners have struggled to replace the highly valued light crude it received from Libya before the uprising, sending prices soaring in the first six months of the year.
