NEW YORK, March 23 (UPI) -- Crude oil prices inched higher overnight on the New York Mercantile Exchange, topping $105 per barrel as fighting in Libya continued.
Oil traders are dealing with two heavyweight events pushing and pulling at prices simultaneously. Chaos on the Middle East, especially in Libya, is sending prices higher, on the disruption of supplies. In Japan, however, a shut down of many industries after the March 11 earthquake has diminished demand in the world's third largest economy. In addition, the Japanese government has allowed oil companies to tap into national reserves as some parts of Japan are experiencing energy shortages.
In the meantime, Saudi Arabia and Kuwait have said they would increase production to make up for what Libya normally produces for the European market. It takes time, however, for increased production to make it onto tanker ships and to waiting markets.
In New York Wednesday, April delivery West Texas Intermediate crude oil gained 85 cents overnight to $105.82 per barrel. Home heating oil prices shed 0.29 cent to $3.0892 per gallon. Reformulated blendstock gasoline prices gained 0.94 cent to $3.0223 per gallon.
Henry Hub natural gas prices added 3.7 cents to $4.291 per million British thermal units.
At the pump, the national average price of unleaded gasoline rose slightly overnight to $3.548 per gallon from Tuesday's $3.547, AAA said.
